Oil Prices Fall 13% After Trump Announces U.S.-Iran Talks
Markets rally as diplomatic talks ease tensions, sending crude prices sharply lower after earlier surge
- Oil prices fell over 13% following Trump’s decision to delay strikes on Iran
- Brent dropped below $100; WTI hit $85.28 per barrel
- Earlier price spike driven by escalating US-Iran-Israel tensions
Oil markets tumbled by more than 13% on Monday after US President Donald Trump announced a delay in planned military strikes on Iran’s energy infrastructure, signaling a potential de-escalation in tensions.
Brent crude briefly slipped below $100 per barrel, trading around $96, while West Texas Intermediate (WTI) fell sharply to a session low of $85.28 per barrel.
Trump’s Announcement Calms Markets
The sharp decline followed Trump’s decision to postpone attacks on Iranian power plants and energy facilities for five days, citing “constructive talks” between Washington and Tehran.
In a post on Truth Social, Trump revealed that discussions over the past two days had been “very good and productive,” raising hopes for a comprehensive resolution to hostilities in the Middle East.
He added that further negotiations would continue throughout the week.
The announcement triggered a broader market reaction, with the US dollar weakening and global stocks rallying on easing geopolitical fears.
Earlier Surge Driven by War Threats
Oil prices had surged earlier in the day amid escalating threats between the US, Israel, and Iran.
Brent crude climbed as high as $114.31 per barrel after Iran warned it would retaliate against Israeli power plants and energy supplies to US bases if its own infrastructure was targeted.
The tensions intensified after Trump issued a 48-hour ultimatum demanding unrestricted access to the Strait of Hormuz, a critical route for global energy shipments.
Conflict Disrupts Global Energy Supply
The ongoing conflict, which began on February 28, has claimed over 2,000 lives and severely disrupted global energy markets.
Key infrastructure across the Gulf has been affected, while maritime traffic through the Strait of Hormuz—responsible for about 20% of global oil and LNG flows—has nearly halted.
Analysts estimate that the region could be losing between 7 to 10 million barrels of oil production daily due to the crisis.
Uncertainty Still Looms
Despite the temporary relief, analysts warn that oil prices remain highly sensitive to further developments.
PVM analyst Tamas Varga noted that prices could climb again if the US proceeds with military action, potentially triggering strong retaliation from Iran.
Meanwhile, International Energy Agency Executive Director Fatih Birol described the current crisis as more severe than the combined oil shocks of the 1970s.
