Oil Prices Plummet as Trump Orders Halt on Strikes Against Iran

Oil prices plummeted on Sunday night after US President Donald Trump announced he would order American forces to hold off on new strikes against Iran. The move comes as a potential deal to end the conflict in the Middle East is near, according to Trump.

The price of US crude oil fell 5% to $80.79 per barrel, while Brent crude, the international standard, dropped 5% to $83.87 per barrel. These prices remain about 20% higher than before the conflict began over five months ago.

The ongoing fighting in the Middle East has had far-reaching consequences for the global economy. Oil shippers have been unable to send vessels through the Strait of Hormuz, a critical waterway that borders Iran, due to the conflict. This has led to sharply higher oil prices and subsequently higher costs for gasoline, jet fuel, and other products.

Oil companies have profited from these high prices, amassing huge profits in the spring due to the inability of petroleum shippers to navigate the Strait of Hormuz.