Oil prices recorded their steepest single-day drop in over three months, as the United States paused airstrikes against Iran and tankers resumed loading at a key Kazakh crude export terminal in the Black Sea, alleviating the supply tightness created by multiple recent pressures.

Brent crude fell 8.7% to settle around $88 per barrel, marking its largest daily decline since April 17. West Texas Intermediate (WTI) and European natural gas prices also saw substantial declines. The U.S. appeared to have halted new strikes against Iran since late Friday, while Iran signaled it would not retaliate immediately and held talks with Oman regarding the Strait of Hormuz.

However, Saudi Arabia later reported intercepting a drone launched from Iraq targeting its oil facilities. In an interview with Axios, U.S. President Donald Trump stated he decided to pause the strikes on Iran to give negotiations another chance. Trump subsequently told reporters that talks with Iran had a "very good chance" of achieving some form of progress and that there was "plenty of time."

Meanwhile, the Caspian Pipeline Consortium terminal on Russia's Black Sea coast resumed crude oil loading operations. This terminal serves as the primary export port for Kazakh crude oil. Data from the U.S. Commodity Futures Trading Commission released on Friday showed that last week's price surge attracted bearish investors, who increased their bets on falling oil prices.

WTI for September delivery fell 7.5% to settle at $82.61 per barrel, while Brent for September delivery fell 8.7% to close at $88.36 per barrel.