Global oil prices fell by more than five per cent on Monday after United States President Donald Trump delayed a planned military strike on Iran and instead pursued negotiations aimed at ending Tehran’s nuclear programme and reopening the Strait of Hormuz.
Brent crude futures dropped $4.49, or 5.11 per cent, to $83.44 per barrel, while U.S. West Texas Intermediate (WTI) crude fell $4.90, or 5.79 per cent, to $79.77 per barrel.
The sharp decline followed comments by Trump, who said he would give diplomacy another chance after Iran and several Middle Eastern countries requested more time to finalise an agreement.
In a post on his Truth Social platform late on Saturday, Trump said the proposed deal would result in the “immediate, complete and total” reopening of the Strait of Hormuz and bring an end to Iran’s nuclear threat.
Oil prices had surged by more than 20 per cent last month following renewed hostilities between the United States and Iran. The gains were further supported by attacks on several oil tankers near Oman, which heightened security concerns and discouraged shipping companies from entering the Gulf to load crude.
Despite Monday’s price decline, analysts cautioned that uncertainty remains high as investors continue to monitor developments in the region.
Market observers noted that attention will now focus on whether negotiations progress or collapse, warning that renewed tensions could see Iran use its influence over the Strait of Hormuz through actions such as targeting a U.S. military base or disrupting tanker traffic in the strategic waterway.
The Strait of Hormuz is one of the world’s most important oil transit routes, making any disruption a major concern for global energy markets.
