Oil prices plunged nearly 5% on Monday, marking the steepest single-session decline in more than six months, after U.S. President Donald Trump indicated Iran was “seriously talking” with Washington, easing tensions with the OPEC member.
Brent crude futures fell $3.30 (4.8%) to $66.02 per barrel, while U.S. West Texas Intermediate crude dropped $3.23 (nearly 5%) to $61.98 per barrel. Both benchmarks are retreating sharply from multi-month highs as the risk of a military strike diminished following Trump’s weekend remarks.
Trump had repeatedly threatened intervention against Iran over nuclear negotiations and domestic protests, which had supported oil prices throughout January. Analyst Priyanka Sachdeva of Phillip Nova noted, “The recent pullback has also been reinforced by renewed strength in the U.S. dollar, which typically makes dollar-denominated oil more expensive for non-U.S. buyers, further weighing on prices.”
The de-escalation followed Tehran’s announcement that arrangements for negotiations were underway, signaling a potential thaw in tensions that had driven January’s oil rally.
