Oil Prices Plummet as Trump Pursues Quick Iran Deal
Oil prices plummeted on Monday after US President Donald Trump announced that the country would hold off from launching a fresh attack on Iran in order to pursue a quick nuclear deal.
The Strait of Hormuz, a vital shipping lane, would be reopened immediately if such a deal is reached, and Iran's nuclear ambitions would come to an end, according to Trump.
As a result, Brent crude futures fell $4.23 per barrel (4.8%) to $83.70, while US West Texas Intermediate crude dropped $5.07 per barrel (6%) to $79.60.
The prices marked the biggest daily falls in absolute and percentage terms since last Monday, despite a significant jump of over 20% in Brent and WTI last month due to heightened security concerns.
OPEC+ approved an oil production quota increase of around 188,000 barrels per day from September, but export disruptions from various regions have limited the impact on prices so far.