Global oil prices fell sharply on Monday after former U.S. President Donald Trump announced a temporary delay in potential military strikes against Iranian power infrastructure and cited constructive discussions aimed at easing tensions with Iran.
Brent crude futures dropped about 8% to $103.27 per barrel, while West Texas Intermediate declined 7.3% to $91.06 reflecting easing concerns over immediate supply disruptions. The decline followed a volatile period in which prices had recently reached their highest levels since 2022.
Trump stated that recent communications between the two sides had been “very good and productive,” suggesting progress toward a broader resolution of hostilities in the Middle East. However, conflicting developments including continued regional tensions and Iran’s reported military actions, limited further losses in oil prices during the session.
The crisis has already impacted global energy flows, particularly through the Strait of Hormuz a critical route for global oil and liquefied natural gas shipments. Analysts estimate significant production disruptions while shipping activity in the region remains constrained.
Markets remain sensitive to geopolitical developments, with investors closely monitoring diplomatic signals supply risks and potential policy responses from major economies and central banks amid ongoing uncertainty.
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