Global oil prices tumbled sharply on Monday after Donald Trump announced a delay in planned U.S. military strikes on Iranian energy infrastructure, easing immediate fears of further escalation in the Middle East conflict.
Benchmark crude prices recorded one of their steepest single-day drops in recent months as markets reacted to the sudden shift in U.S. policy.
Brent crude futures fell by more than $17, or roughly 15%, to a session low of about $96 per barrel by late morning trading.
U.S. West Texas Intermediate (WTI) also declined significantly, dropping around $13, or 13.5%, to approximately $85.28 per barrel.
The sharp decline reflects renewed optimism among traders that the conflict may not immediately disrupt global oil supply as severely as previously feared.
Oil prices had surged in recent weeks amid escalating tensions between the United States, Israel, and Iran, particularly due to concerns over disruptions in the Strait of Hormuz a critical chokepoint through which about one-fifth of the world’s oil passes.
The waterway has been partially restricted since the outbreak of hostilities, fuelling fears of a prolonged supply shock.
Trump’s decision to postpone strikes coupled with ongoing diplomatic talks has temporarily eased those concerns, prompting a broad sell-off in oil markets.
Despite the sharp drop, analysts caution that volatility is likely to persist.
The Middle East conflict remains unresolved, and any renewed threat to energy infrastructure or shipping routes could quickly reverse the downward trend in oil prices.
Traders are closely monitoring diplomatic developments in the coming days, as the outcome of talks between Washington and Tehran could determine whether markets stabilise or face another surge.
While Monday’s price drop signals short-term relief, the broader outlook for global energy markets remains uncertain.
With geopolitical tensions still high and the risk of supply disruption lingering, analysts warn that oil markets could remain highly sensitive to even minor developments in the conflict.
For now, Trump’s pause has cooled immediate fears but the situation remains far from settled.
