Trump Cancels Strike, Restarts Talks With Iran Amid Oil Price Slump
US President Donald Trump announced on Monday that fresh talks with Iran would begin. The decision to restart negotiations comes after he cancelled a planned strike that was reportedly shelved partly due to requests from US allies in the Middle East, including Saudi Arabia.
The operation, which Trump described as 'the biggest attack since World War II', has been scrapped, and diplomatic efforts will now take precedence. He also indicated discussions may be nearing an agreement on reopening the Strait of Hormuz, while maintaining that Washington would continue pursuing an end to Iran's nuclear program.
Oil prices fell in response to Trump's comments, with West Texas Intermediate (WTI) crude down 6.72% at $79.38. The decrease is attributed to the easing of tensions in the Middle East and the resulting reduction in geopolitical risk premiums.