Trump's Iran Halt Sends Oil Prices Plummeting

Oil prices plummeted by over $4 per barrel after US President Donald Trump announced that the country would be holding off on a new strike against Iran to allow for negotiations to reopen the Strait of Hormuz.

The drop was significant, with Brent crude falling $4.65 (5.29%) to $83.28 and US West Texas Intermediate plunging $5.20 (6.14%) to $79.47 by 0802 GMT on Monday, according to Reuters.

The move was seen as a signal that the odds of a near-term supply-route shock had decreased, which traders took as a cue to unwind some of their previous risk premium.

OPEC+ agreed to raise output by about 188,000 barrels per day from September, but it remains unclear whether this will translate into additional supply reaching the market.