Trump's Iran Deal Sparks Oil Price Plunge
Oil prices plummeted on Sunday night after US President Donald Trump announced that he would order US forces to hold off on new strikes against Iran. Trump claimed that a deal to end the conflict in the Middle East was near, which could allow oil shippers to safely transport vessels through the Persian Gulf.
The Strait of Hormuz is a critical waterway that borders Iran and has been affected by the ongoing conflict between the US and Iran. The price of US crude oil dropped 5% to $80.79 per barrel on Sunday night, while Brent crude, the international standard, fell 5% to $83.87 per barrel.
The conflict, which began in late February with US and Israeli attacks on Iran, has resulted in wildly fluctuating oil prices. The price of US crude oil was up as high as $100 per barrel multiple times during the spring, leading to higher costs for gasoline, jet fuel, and other products that rely on diesel.
Despite the volatility, oil and gas companies have profited from the high prices due to the difficulties in transporting petroleum through the Strait of Hormuz.