Oil prices dropped sharply on Monday after U.S. President Donald Trump said planned strikes on Iranian energy facilities had been temporarily halted following talks with Tehran.
As of 08:39 ET, Brent crude futures — the global benchmark — had fallen 6.7% to $99.32 per barrel, while U.S. West Texas Intermediate crude dropped 7% to $91.35 per barrel.
Trump said he had paused previously threatened military action against certain Iranian facilities for a five-day period after what he described as “productive” discussions with Iranian officials.
In a social media post, Trump said the talks held over the past two days aimed at achieving a “complete and total resolution” to the conflict had been “productive.”
“Based on the tenor and tone of these” conversations, which are expected to continue through the week, Trump said he had directed the Pentagon to “postpone any and all military strikes” targeting Iranian power plants and energy infrastructure for five days.
Brent crude had remained above $100 per barrel for several days, supported by concerns that the Strait of Hormuz — a key shipping route south of Iran through which about one-fifth of global oil supplies pass — could remain closed for an extended period. Trump did not reference the strait in his social media message.