Trump Calls Off Iran Attack, Sending Oil Prices Plummeting

Oil prices plummeted on Monday after US President Donald Trump announced that new talks with Iran would begin, calling off a planned attack on the Islamic Republic. Brent for October fell by as much as 7.3% to $81.55 per barrel, while West Texas Intermediate was near $80.

The decision to cancel the attack came after allies in the Middle East, including Saudi Arabia, asked Trump to pursue a deal instead. The President tweeted that he had agreed to call off the attack 'subject to being able to rapidly make a DEAL' to reopen the Strait of Hormuz quickly.

The uncertainty surrounding shipping through the waterway, which carries about one-fifth of the world's crude oil and liquefied natural gas (LNG), remains high. Iranian Foreign Minister Abbas Araghchi said on Sunday that negotiations between Iran and Oman are in the final stages, but it is unclear whether they will cover the status of the Strait.