Trump Delays Iran Attack, Pushes for Nuclear Deal Amid Oil Price Plunge

Oil prices plummeted on Monday as investors responded to signs that tensions between the US and Iran were easing after President Donald Trump held off on a military attack. Instead, he's pushing for an agreement to resolve the nuclear dispute and reopen the Strait of Hormuz.

The price drop was sharp, with Brent crude oil falling $4.65 or 5.29% to $83.28 per barrel, while US West Texas Intermediate (WTI) crude dropped $5.20, or 6.14%, to $79.47 per barrel.

This retreat reflects a reduction in the geopolitical risk premium that had driven up prices as traders assessed the possibility of negotiations easing disruptions to oil shipments from the Middle East.

Trump said Iran and other Middle Eastern countries had requested additional time to work towards an agreement, which could lead to the full reopening of the Strait of Hormuz and address concerns surrounding Tehran's nuclear program.