Oil Prices Drop After Trump Announces Cancellation of Planned Iran Strike
U.S. crude prices fell sharply on Monday as investors reduced geopolitical risk premiums following President Donald Trump's announcement that a planned strike on Iran had been called off.
Oil prices slipped in Asian trading on Monday after President Donald Trump said he had halted a planned military strike on Iran. West Texas Intermediate futures for September delivery fell 4.5% to $80.89 a barrel, while Brent crude for October delivery dropped 4.4% to $84.10 a barrel.
Trump posted on Truth Social that Tehran and other Middle Eastern nations had asked the United States to pause any attack, noting that a deal had been reached that would "immediately, completely, and totally open the Hormuz Strait" and end Iran's nuclear threat.
The president had been considering another round of strikes amid diminishing diplomatic prospects since the conflict began on Feb. 28. Iran responded cautiously, with acting defense minister Seyyed Majid Ibn Al-Reza stating that the United States' statements were part of a psychological and cognitive warfare campaign and that every threat would be taken seriously. Iran's Fars International news agency, linked to the Islamic Revolutionary Guard Corps, dismissed the proposal as a "wish list" in a Telegram post.
— CNBC's Azhar Sukri and Terri Cullen contributed to this report.