Trump Halts Iran Strike Plans, Sending Oil Prices Plummeting

US President Donald Trump's decision to call off a planned strike on Iran sent shockwaves through financial markets, causing oil prices to plummet by around 5% and stocks to surge. The Dow Jones Industrial Average jumped over 600 points as investors re-priced the likelihood of a wider Middle East conflict.

The Hormuz Premium, which reflected the market's expectation of supply disruptions in the Strait of Hormuz, was eliminated as Trump announced a shift towards diplomacy.

WTI crude fell by 5.8% to $79.75 per barrel, while Brent October futures dropped by 4.9% to $83.66 per barrel.

The sell-off affected funds and stocks related to the energy sector, with Exxon Mobil (XOM) and Chevron (CVX) experiencing significant losses.