Oil falls over 13% on Trump postponing military strikes on Iran energy infrastructure

Oil prices dropped more than 13% on Monday after U.S. President Donald Trump announced a delay in military strikes against Iranian energy facilities. By 1108 GMT, Brent crude futures had decreased by about $17, or 15%, reaching a low of $96 a barrel. Similarly, U.S. West Texas Intermediate saw a decline of $13, approximately 13.5%, hitting a low of $85.28. The fall in oil prices was triggered by Trump's remarks suggesting that the U.S. and Iran might be able to resolve their conflicts. Brent crude, which is the global oil benchmark, fell over 7% to trade below $99 a barrel after peaking at $114 earlier in the day. WTI, the U.S. benchmark, dropped 8% to $90 a barrel, around $10 less than its earlier trading price. In a post on Truth Social, Trump expressed satisfaction about the productive talks between the U.S. and Iran aimed at resolving hostilities in the Middle East. He mentioned that these discussions would continue throughout the week. Trump instructed the U.S. Department of War to delay any military actions against Iranian energy facilities for five days, depending on the success of ongoing negotiations. This shift in stance came just two days after he threatened to “obliterate” Iran's power plants if they did not reopen the Strait of Hormuz by Monday evening. His comments followed a day after he discussed the possibility of winding down the conflict. Iran’s Islamic Revolutionary Guard Corps warned that they would retaliate against any attacks on their energy facilities and would keep the Strait of Hormuz closed indefinitely. These statements had previously caused oil prices to rise on Sunday, with gains continuing into Monday until the latest updates. The IRGC stated, “If you strike electricity, we will strike electricity.” Iran also claimed it would target Israeli energy and communications infrastructure, as well as power plants in countries hosting U.S. military bases in the region.