Trump's Pause on Iran Strikes Sends Oil Prices Tumbling

Oil prices plummeted over 7% on Monday after US President Trump announced a pause in new military action against Iran and restarted negotiations regarding the nuclear issue and the Strait of Hormuz. The move significantly cooled market concerns over crude supply disruptions in the Middle East.

The OPEC+ decision to continue raising production targets in September added further downward pressure on oil prices, with Brent crude falling below $83 per barrel and WTI crude dropping nearly 8%.

Trump stated that negotiations between the US and Iran would begin on Monday afternoon, covering topics such as transit arrangements in the Strait of Hormuz and the Iranian nuclear issue. He emphasized that an agreement concerning the reopening of the strait could make progress soon.