Oil Prices Plummet as Trump Calls Off Iran Attacks Amid Gulf Allies' Pressure

Crude oil prices plummeted on Hyperliquid after President Donald Trump unexpectedly halted planned attacks against Iran, citing requests from Iran and other Middle East countries. The decision marked a sudden shift in the conflict's trajectory, leaving markets scrambling to reassess their positions.

The WTI crude oil price dropped to $81, while Brent slid to $83, significantly lower than its peak of $100 last month. The 24-hour trading volume for WTI reached $181 million, reflecting the heightened market volatility.

Trump's change of heart is attributed to a phone call from Saudi Arabia's Crown Prince Mohammed bin Salman and pressure from other Gulf allies like Qatar, UAE, Turkey, and Pakistan. This situation has been dubbed 'TACO' (Trump Always Chickens Out) by Axios, highlighting the US president's tendency to back down from military action.

The potential consequences of a full-scale attack on Iran were severe, with the country threatening to retaliate by targeting critical infrastructure across the Gulf, including oil and gas facilities, bridges, power plants, and desalination plants. Iranian officials have dismissed President Trump's claims of negotiations making progress, emphasizing that no direct talks are taking place between Washington and Tehran.