Explained: Why crude oil prices tumbled over 9% to below $90/bbl in one day

Crude oil prices tumbled over 9% to below $90 per barrel in a single session after China-backed diplomatic efforts through Pakistan sought to revive US-Iran peace talks and the US military halted its two-week-long strikes. Despite the sharp drop, fewer than 10 commodity vessels crossed the Strait of Hormuz over the weekend and risks remain tilted to the upside, with JPMorgan estimating every additional month of disruption could add $7-$8 per barrel to Brent prices and Goldman Sachs warning Brent could climb to $120 if shipping disruptions persist.