Oil Prices Slide as Trump Signals Progress in Iran Talks
Oil markets dropped sharply on Monday after Donald Trump pointed to “productive” discussions with Tehran and suggested that crude prices could “drop like a rock” if a deal is reached to ease tensions in the Middle East.
Brent and WTI Post Sharp Losses
By 10:34 ET (14:34 GMT), Brent crude—the global benchmark—fell 8.6% to $97.26 per barrel, slipping below the $100 level.
U.S. West Texas Intermediate (WTI) crude also declined significantly, dropping 9% to $89.36 per barrel.
Trump Delays Iran Strikes for Five Days
Trump confirmed that previously planned military strikes on Iranian energy infrastructure had been postponed for five days following what he described as “very good conversations” with Tehran.
In a social media statement, he said recent discussions aimed at achieving a “complete and total resolution” to the conflict had been constructive, with talks expected to continue throughout the week.
Optimism Builds Around Potential Agreement
Speaking to reporters, Trump highlighted “major points of agreement” and described the negotiations as progressing positively. He suggested that a successful outcome could trigger a sharp decline in oil prices.
His comments reinforced market expectations that easing geopolitical tensions could reduce the risk premium currently priced into crude markets.
US Moves to Increase Oil Supply
The administration has also taken steps to stabilize oil prices by boosting supply. This includes temporarily easing sanctions on Iranian oil shipments already at sea, allowing more crude to enter global markets.
Trump emphasized the importance of increasing available supply, stating that additional oil entering the system would help offset price pressures.
Strait of Hormuz Remains a Key Risk
In recent days, Brent prices had remained above $100 per barrel due to fears of prolonged disruption around the Strait of Hormuz.
This critical waterway, located south of Iran, accounts for roughly one-fifth of global oil shipments and has become a central flashpoint in the conflict. Notably, Trump did not reference the strait in his latest comments.
Market Reaction Reflects Easing Risk Premium
The sharp decline in oil prices suggests that traders are beginning to price in the possibility of de-escalation. However, uncertainty remains high, and further developments in negotiations will be key in determining the direction of energy markets.
