Trump's Diplomatic Pause Sends Oil Prices Reeling

Global oil prices plummeted on Monday after US President Donald Trump signaled a pause in military action against Iran, raising hopes for renewed diplomatic talks.

Brent crude futures dropped 7% to $82 per barrel, while Nigerian crude slipped from above $85, as markets reacted to the easing of geopolitical tensions.

Trump's decision followed appeals from regional allies, including Saudi Arabia and the UAE, to pursue peace rather than escalation. 'The administration would not authorize a planned military strike against Iran,' Trump said, noting that consultations with aides and partners were ongoing.

The prospect of reopening the Strait of Hormuz to unhindered shipping helped calm supply fears, analysts said. Refiners in Asia and Europe had previously scrambled for non-Gulf crude, temporarily boosting demand for Nigerian grades.