Oil prices drop as Trump hints at pause on Iran strikes and possible Hormuz reopening

Oil prices fell sharply on Monday after President Donald Trump said the United States was delaying further strikes against Iran while Middle-East allies worked on an outline for ending the conflict and reopening the Strait of Hormuz. The announcement prompted West Texas Intermediate to drop about 6.2% to roughly $79.45 a barrel and Brent crude to slip more than 3.5% to around $79.30 a barrel.

"We are holding off on fresh strikes because our allies have reached an outline of an agreement that would include the immediate, complete and total opening of the Hormuz Strait and an end to Iran's nuclear threat," Trump said.

Iran’s foreign ministry spokesperson told Reuters that no negotiations with the United States were taking place, adding that discussions were limited to talks with Oman over the management of the strait.

The price decline follows a period earlier this year when oil surged above $110 a barrel as the conflict disrupted shipments through the Persian Gulf. Prior to the war, crude traded in the $60-$70 range, and the recent spike had pushed U.S. gasoline prices above $4 per gallon.

The White House has previously urged gas stations to lower retail prices, arguing that higher margins were inflating costs for consumers. Industry groups countered that retail prices tend to lag behind crude price movements because stations must clear higher-cost inventory before passing on savings.