Oil Prices Plummet on Trump's Iran Strike Cancellation

Oil prices plummeted on Monday after US President Donald Trump announced that he had cancelled a planned military strike against Iran, opting for fresh talks instead. Brent crude for October delivery fell as much as 7.3% to trade below $84 per barrel during early Asian trading.

The sharp decline came as investors shifted focus from escalating geopolitical tensions to renewed diplomatic efforts. Trump's announcement prompted traders to book profits after crude prices posted strong gains in July, with Brent surging nearly 25% for its strongest monthly performance since March.

West Texas Intermediate (WTI) crude also dropped below $81 per barrel as the diplomatic developments reduced immediate fears of supply disruptions. However, prices recovered part of their early losses after reports of a tanker-related explosion near the coast of Oman renewed concerns over security risks in the Strait of Hormuz.