Oil prices plummeted on Monday following US President Donald Trump’s announcement that he has ordered a halt to threatened strikes on Iranian energy infrastructure, citing “very good and productive talks” with Tehran.
Trump said the United States and Iran “have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” Trump wrote, in all capitals, early Monday on his Truth Social platform.
“I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five day period, subject to the success of the ongoing meetings,” he added.
A barrel of West Texas Intermediate, the North American benchmark, was trading under $90 US, down more than seven per cent. Also, stock markets jumped at the start of trading.
Oil prices have soared by about 50 per cent this month since the conflict in the Middle East began.
However, after Trump’s Monday ceasefire announcement, Brent crude fell more than 15% during the session, dropping to a low of $96 per barrel, breaking below the $100 mark for the first time since 11 March. US benchmark West Texas Intermediate (WTI) also slid 13.5%, falling to a session low of $85.28.
By 1130 GMT, Brent rose again to $104 per barrel level, while WTI was at $90.55.
Brent crude prices had surged sharply by more than 60% since the beginning of the Middle east crisis, rising to around $112 per barrel on Monday, before Trump’s announcement.
