WASHINGTON — Global oil prices plunged more than 2% after President Donald Trump halted a scheduled military strike against Iran at the last minute, citing a chance for a diplomatic breakthrough.
The cooling of geopolitical tensions caused Brent Crude to drop 2.7% to $109.09 per barrel, while U.S. WTI Crude shed 1.3% to $107.28. Markets reacted with relief after days of surging on fears of a wider Middle East conflict.
Trump noted a "very high probability" of reaching a deal to ensure Tehran does not obtain a nuclear weapon, following urgent requests for restraint from regional allies like Saudi Arabia and the UAE. However, he warned that the U.S. military remains on high alert to strike "on a moment's notice" if talks fail.
While the pause eases immediate supply fears near the critical Strait of Hormuz chokepoint, market analysts warn that underlying risks remain high until a permanent diplomatic agreement is finalized.