Trump Delays Iran Strike, Oil Prices Plummet to Three-Week Low
Oil prices plummeted to a three-week low on Monday as US President Donald Trump stepped back from plans for a military strike against Iran, raising hopes that diplomatic efforts could ease tensions and prevent disruptions to energy supplies.
The Strait of Hormuz remains one of the world's most strategically important energy chokepoints, carrying roughly one-fifth of global oil trade before hostilities between the United States, Israel, and Iran escalated earlier this year.
International benchmark Brent crude dropped 7 percent, or $6.35, to settle at $83.77 per barrel, while US West Texas Intermediate (WTI) crude fell 5.1 percent, losing $4.33 to close at $80.34 per barrel.
The decline marked Brent's weakest closing level since mid-July, and market analysts said the drop was also influenced by the expiry of the higher-priced September Brent contract.