Trump Holds Fire on Iran Attack, Oil Prices Plummet $4

Oil prices plummeted $4 per barrel on Monday after US President Donald Trump announced he would hold off on launching a fresh attack on Iran, opting instead to pursue a quick deal that would curb Tehran's nuclear ambitions and reopen the Strait of Hormuz.

Brent crude futures dropped 4.64% to $83.85, while US West Texas Intermediate crude declined 4.74% to $80.66 a barrel.

The sudden de-escalation in tensions follows last month's surge in oil prices, which jumped over 20% as fighting between the US and Iran resumed and attacks on tankers around Oman heightened security concerns.

'The bigger focus is whether this week turns into a rinse and repeat of last week, with hopes of a deal collapsing as Iran digs in its heels and continues to leverage its control over the Strait, potentially through an attack on a US base or a tanker transiting the waterway,' said IG market analyst Tony Sycamore.