Global oil prices dropped sharply on Monday after United States President Donald Trump announced a temporary halt to planned strikes on Iran’s energy infrastructure, citing progress in ongoing negotiations with Tehran, ENigeria Newspaper has learnt.
Brent crude fell below the $100 mark for the first time since early March, while West Texas Intermediate (WTI) dropped to the mid-$80 range, as markets reacted positively to the de-escalation. Stock markets also opened higher following the announcement.
This development happened after President Trump disclosed that both countries had made progress in talks, saying, “the United States and Iran have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.”
‘Based on the tenor and tone” of the discussions, “witch (sic) will continue throughout the week, I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five day period, subject to the success of the ongoing meetings”, he had added.
The pause in military action triggered a sharp market response. Brent crude plunged more than 15 per cent to about $96 per barrel during trading, while WTI slid 13.5 per cent to around $85.28. By midday, however, prices rebounded slightly, with Brent climbing back above $100 and WTI hovering around $90.
The drop follows weeks of volatility in global energy markets, with oil prices having surged by roughly 50 to 60 per cent since tensions escalated in the Middle East.
Earlier in the day, Brent had risen as high as $112 per barrel before Trump’s announcement reversed the trend.
Markets remain sensitive to developments in the region, with investors closely watching whether the ongoing talks will lead to a lasting resolution or a return to heightened tensions.
However, an official from the Iranian government categorically denied that any negotiations were taking place. The official stated that “negotiations are not happening and psychological warfare won’t restore the Strait of Hormuz or stabilize energy markets,” and that Trump’s five-day ultimatum merely highlighted continued plans for additional strikes, which Iran has declared it would counter with a full-scale defense reaction.
