Global oil prices plunged on Monday after US President Donald Trump said a planned military strike against Iran had been halted, easing fears of a broader conflict in the Middle East and reducing concerns over potential disruptions to global oil supplies.
According to Reuters, international benchmark crude prices dropped by more than $4 per barrel as investors reacted to signs of easing geopolitical tensions.
Brent crude fell by $4.08, or nearly 4.6%, to $83.85 per barrel, while US West Texas Intermediate (WTI) crude declined by $4.01 to $80.66 per barrel.
The sharp decline comes after weeks of heightened volatility in global energy markets. Oil prices had surged more than 20% last month following renewed US military action linked to Iran and reports that Tehran-backed groups targeted multiple oil tankers near Oman, raising concerns over supply disruptions through key shipping routes.
Market analysts said Trump’s announcement reduced the geopolitical risk premium that had been priced into crude markets. However, they warned that oil prices remain highly sensitive to developments in the Middle East, particularly around the Strait of Hormuz, a critical route for global energy exports.
Despite Monday’s decline, traders continue to monitor the region closely as any escalation in tensions could once again trigger sharp swings in crude oil prices.
