Oil prices fall 13% after Trump delays Iran strikes for five days
U.S. President Donald Trump postponed military attacks on Iranian energy infrastructure following what he described as productive talks with Tehran.
10:21 AM
Oil prices fell sharply Monday after U.S. President Donald Trump announced he had ordered a five-day postponement of military attacks against Iranian energy infrastructure.
Trump made the announcement on his Truth Social platform, stating that the United States and Iran had conducted "very good and productive conversations" over the previous two days regarding "a complete and total resolution of our hostilities in the Middle East." He said the talks would continue throughout the week.
The president wrote that based on "the tone and tenor" of these discussions, he had instructed the Department of Defense to postpone any military attacks on Iranian power plants and energy infrastructure for five days, contingent on the success of ongoing meetings and conversations.
The announcement came hours before a 48-hour ultimatum Trump had issued Saturday was set to expire. That ultimatum had demanded Iran reopen the Strait of Hormuz or face bombardment of energy installations.
Crude prices declined significantly following Trump's statement. The West Texas Intermediate benchmark fell 7.52% to $90.84 per barrel, while Brent North Sea crude dropped 6.55% to $104.84 per barrel, according to reports from Tokyo. Other sources recorded the WTI at $90.02, down 8.17%, and Brent at $102.15, down 8.95%.
The price declines extended beyond energy markets. Spain's Ibex 35 stock index reversed course at midday, rising 1.08% to 16,893.9 points following the announcement.
However, Iranian semi-official news agencies denied that any conversations between Tehran and Washington had taken place, characterizing Trump's announcement as a unilateral U.S. initiative rather than the result of bilateral talks.
The International Energy Agency's director, Fatih Birol, described the current energy crisis as "very serious," citing the blockade of the Strait of Hormuz and attacks on Middle Eastern energy infrastructure. He stated that no country would be unaffected by the situation.