Oil Prices Plummet as Trump Cancels Iran Attack
Oil prices plummeted by about 5% on Monday to a three-week low after US President Donald Trump called off a planned attack on Iran in an attempt to seal a quick deal that could boost oil supplies from the Gulf.
Brent futures fell $4.19, or 4.8%, to $83.74 a barrel at 12:40 p.m. ET (1640 GMT), while US West Texas Intermediate (WTI) crude dropped $4.92, or 5.8%, to $79.75.
The sharp decline in oil prices came despite Trump's claims that talks with Iran were underway and a deal was imminent. However, Iranian officials contradicted this, stating that no negotiations with the US were taking place and no meetings were scheduled.
Analysts at energy advisory firm Ritterbusch and Associates noted that 'today's sharp selloff... in crude futures looks like another overreaction to Trump's comments.' They added that Trump has a history of talking down oil prices, which can prevent sustained advances in gasoline prices.