Global oil prices fell sharply on Monday as traders reacted to U.S. President Donald Trump’s announcement that a planned military strike against Iran had been delayed and that new negotiations would begin, reducing immediate concerns over a broader Middle East conflict and potential disruptions to global energy supplies.
Brent crude, the international benchmark for oil prices, declined about 4.8 percent in early trading to $83.73 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped more than 5 percent to around $80.34 per barrel.
The decline came after weeks of market volatility driven by rising tensions between Washington and Tehran. Oil prices had repeatedly surged in recent months as investors worried that a military confrontation could threaten energy infrastructure and disrupt shipments through the Strait of Hormuz, one of the world’s most important oil transit routes.
Trump’s announcement that military action had been postponed and that diplomatic efforts would resume immediately affected market sentiment. Traders who had previously priced in the possibility of a wider regional conflict began removing part of the additional cost, known as the “war risk premium,” from oil prices.
The Strait of Hormuz remained at the center of market concerns during the recent tensions. The waterway, located between Iran and Oman, is a major route for global energy shipments, and any disruption there could have significant consequences for oil markets and the global economy.
Oil prices had climbed in previous weeks amid fears that an escalation between the United States and Iran could affect supply from the Middle East. At various points, prices moved above $89 and $90 per barrel as investors responded to military threats and uncertainty over the future of regional stability.
However, experts warned that oil markets remain highly dependent on political developments. Any major progress in talks between the United States and Iran could push prices lower, while renewed confrontation or threats against regional energy routes could trigger another rapid increase.
