Trump's Iran Strike U-Turn Sends Crude Prices Tumbling

President Trump's announcement that he had called off planned strikes against Iran sent shockwaves through the global oil market, causing crude prices to plummet on Monday.

West Texas Intermediate (WTI) futures fell by 6.21% to $79.41 a barrel, while Brent crude dropped 5.11% to $83.24. The sharp decline was largely due to the assumption that the Strait of Hormuz would reopen following the announcement.

However, this assumption may be premature, as Iran has yet to confirm any direct negotiations with the US. Foreign Ministry spokesperson Esmaeil Baghaei stated that no talks are currently taking place between Tehran and Washington.

The last time WTI futures closed below $70 was February 27, just before the Iran war started, highlighting the significant premium still embedded in crude prices.