Oil prices plunged over 10 percent on Monday, after US President Donald Trump announced a 5-day pause on attacks on Iranian energy sites. Trump described the talks between Washington and Tehran as “in-depth, detailed, and constructive,” adding that they will continue throughout the week.
According to reports, the International benchmark Brent North Sea crude fell sharply by over 14% to $96.00 per barrel. Meanwhile, the main US oil contract, West Texas Intermediate, also tumbled by over 14 per cent to $84.37 per barrel.
The US and Iran in talks to cease hostilities
The US and Iran “have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” President Trump wrote early Monday on Truth Social.
“Based on the tenor and tone” of the talks, “witch (sic) will continue throughout the week, I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five day period, subject to the success of the ongoing meetings,” he added.
Postponement comes hours before…
The postponement comes shortly ahead of the expiration of a 48-hour ultimatum by the United States demanding that Iran resume the Strait of Hormuz.
“If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!” Trump said earlier on Sunday.
Oil price drop comes on the backdrop of escalating conflict
The oil price drop comes amid escalating hostilities in West Asia following the US-Israeli joint strike on Iran, which started on February 28, 2026.
The war has since intensified, with Tehran launching strikes on US military bases across the Gulf and Israeli cities in retaliation. Additionally, the disruption triggered after the closure of the Strait of Hormuz has driven oil prices above $126 per barrel, leading to volatility in global energy markets.
