Oil prices fell sharply on Monday morning after U.S. President Donald Trump announced the suspension of his previously threatened strikes on Iranian energy infrastructure, following what he described as “very good and productive talks” with Tehran. The announcement brought immediate relief to global markets, which had been rattled by escalating tensions in the Middle East.
Trump, writing in all capitals on his Truth Social platform, stated that the United States and Iran had engaged in “very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.” He added that, “based on the tenor and tone” of these discussions—which are expected to continue throughout the week—he had instructed the Department of War to postpone all military strikes against Iranian power plants and energy infrastructure for a five-day period, contingent on the success of ongoing negotiations.
Following the announcement, Brent crude prices fell more than 15% during the session, dipping below the $100 mark to $96 per barrel for the first time since 11 March. The U.S. benchmark, West Texas Intermediate (WTI), dropped 13.5% to a session low of $85.28 per barrel. Earlier in the month, oil prices had surged by roughly 50% as the conflict in the Middle East intensified, with Brent crude climbing above $112 per barrel prior to Monday’s development.
By 11:30 GMT, prices had partially rebounded, with Brent crude rising to around $104 per barrel and WTI trading at $90.55. Analysts noted that the sharp fluctuations reflect both the volatility of energy markets during geopolitical crises and the market’s sensitivity to high-level diplomatic developments.
Stock markets responded positively to the news, with equities jumping at the start of trading, reflecting investor optimism that the temporary de-escalation in tensions could ease energy costs and global supply concerns.
This latest development underscores the significant influence of geopolitical events on global oil markets and highlights how diplomatic engagements can have immediate, tangible effects on commodity prices. Investors and policymakers will continue to monitor the Middle East closely as talks between Washington and Tehran progress.
