Trump Cancels Strike, Oil Prices Plummet as Diplomacy Resumes

Oil prices plummeted over 5% on Monday after US President Donald Trump announced that peace talks with Iran would resume later in the day. The decision came following his cancellation of a planned military strike against Tehran.

Brent crude, the international benchmark, dropped to around $83.40 per barrel as of 0605GMT, while West Texas Intermediate (WTI), the US benchmark, declined 6% to $79.60. These sharp price drops were largely due to eased concerns over further disruptions to energy supplies from the Middle East.

Trump stated that key US allies in the region, including Saudi Arabia, had urged him to suspend the attacks and prioritize negotiations. He also reiterated his call for the Strait of Hormuz, a crucial oil transit route, to be reopened swiftly.