Oil prices dropped sharply on Monday after US President Donald Trump announced that planned military action targeting Iran’s energy infrastructure had been postponed.
Brent crude fell by about $17, or nearly 15 percent, reaching an intraday low of $96 per barrel. US West Texas Intermediate (WTI) also declined by $13, or around 13.5 percent, to $85.28 per barrel.
Later in the session, prices partially recovered. Brent rose back to around $105 per barrel, while WTI climbed to about $91.9 per barrel, though both remained lower overall.
In a statement, Trump said the United States and Iran had held constructive discussions over the past two days aimed at resolving tensions in the Middle East. He added that military strikes on Iranian energy facilities had been postponed for five days to allow talks to continue.
The drop in oil prices reflects easing geopolitical tensions in the region, which is critical for global energy supply.
Earlier, disruptions linked to the closure of the Strait of Hormuz and attacks on energy facilities had reduced global oil supply by an estimated 11 million barrels per day, contributing to market volatility.
With ongoing discussions between the parties, there is growing speculation that tensions could ease further in the coming weeks if progress continues.
