Trump Cancellation Sends Oil Prices Plummeting to Three-Week Low

Oil prices plummeted to a three-week low on Monday after US President Donald Trump called off his threatened attack on Iran in hopes of sealing a quick nuclear deal.

Front-month Brent futures fell $6.35, or 7.0 percent, to settle at $83.77 a barrel, while US West Texas Intermediate (WTI) crude dropped $4.33, or 5.1 percent, to close at $80.34, marking the lowest settlement for Brent since July 13.

The sharp decline was partly due to the start of the less expensive October futures as the front-month after the more expensive September contract expired on Friday.

Trump's decision to cancel his attack on Iran was seen as a move to boost oil supplies from the Gulf, but analysts at Ritterbusch and Associates warned that it may be another overreaction to Trump's comments.