Global oil prices declined significantly on Monday after US President Donald Trump announced a temporary halt to military strikes on Iran’s energy infrastructure, following what he described as productive talks with Tehran.
In a statement on social media, Trump said he had instructed the Department of Defense to suspend all planned strikes on Iranian power plants and energy facilities for five days, reports Al Jazeera.
The decision came shortly after he warned that the United States could launch attacks if Iran failed to reopen the Strait of Hormuz within 48 hours.
The announcement triggered an immediate reaction in global markets.
International crude oil prices dropped by more than 13 percent, with Brent crude falling about $17, or 15 percent, to $96 per barrel. US West Texas Intermediate (WTI) crude also declined by $13, or 13.5 percent, to $85.28 per barrel, Gulf news reports.
The Strait of Hormuz, through which nearly one-fifth of the world’s oil and liquefied natural gas (LNG) supplies pass, has remained largely disrupted since late February amid escalating tensions involving Iran. The disruption had earlier driven oil prices above $100 per barrel, at times surging more than 50 percent compared to pre-conflict levels.
Market analysts say the temporary pause has eased fears of further supply disruptions, leading to a sharp drop in prices, although uncertainty persists over the reopening of the key shipping route.
