Trump's Iran Strike Cancellation Sends Oil Prices Plummeting Over 5%

Oil prices plummeted over 5% on Monday, hitting a three-week low after President Donald Trump called off a planned military strike on Iran. The decision followed Trump's weekend announcement that he wanted to secure a quick agreement to boost oil supplies from the Gulf.

Iran quickly rejected this characterization, with Foreign Ministry spokesman Esmail Baghaei stating that no negotiations with the US were taking place and no meetings were scheduled.

The pullback erased some of the geopolitical risk premium built up over the past month, but analysts cautioned that physical supply disruptions in key shipping lanes remain unresolved.

US West Texas Intermediate (WTI) crude dropped $5.77, or 6.8%, to $78.90 a barrel, while Brent crude futures fell $5.04, or 5.73%, to $82.89 a barrel.