Trump's Diplomatic Halt Sends Oil Prices Plunging 6%
Oil prices plummeted nearly 6% on Monday after US President Donald Trump put a halt to strikes against Iran, sparking hopes for a diplomatic resolution to the conflict. The move came after two weeks of daily attacks.
The international benchmark Brent crude traded at $86.38 per barrel at 10:20 am local time (7:20 GMT), down 5.78% from the previous close of $91.68. US benchmark West Texas Intermediate (WTI) fell by a larger margin, dropping 6.3% to $83.69 per barrel.
The price drop follows a brief spike last week, when Brent crude reached $100 a barrel amid concerns about disruptions to shipping through the Strait of Hormuz and Bab el-Mandeb Strait. However, prices retreated after Trump's decision to pause strikes on Iran, easing war risk premiums that had driven gains.
According to reports, Trump wants to allow more room for diplomacy, believing that current US strikes have reached their practical limit without escalating into major combat. Iranian Foreign Ministry spokesman Esmaeil Baqaei expressed skepticism about the prospects of renewed diplomacy, stating that conditions remain absent and accusing Washington of undermining diplomatic efforts through military actions.