Oil Prices Plunge as Trump Cancels Iran Strike and Diplomatic Efforts Begin

Oil prices plummeted on Monday as US President Donald Trump announced fresh talks with Iran and cancelled a planned military strike, reducing immediate fears of supply disruptions.

The Brent crude price for October delivery fell as much as 7.3% to trade below $84 per barrel during early Asian trading, while West Texas Intermediate (WTI) crude dropped below $81 per barrel.

The sharp decline came as investors shifted focus from escalating geopolitical tensions to renewed diplomatic efforts, although risks around the Strait of Hormuz continue to keep energy markets on edge.

Trump's announcement sparked a sell-off in oil prices after they had surged nearly 25% in July, their strongest monthly performance since March.