Global oil prices fell by more than $4 per barrel after US President Donald Trump announced that a planned military strike on Iran had been called off and that Washington would pursue diplomatic talks with Tehran instead.
According to market reports, the decline came after Trump said diplomacy remained his preferred approach to resolving tensions with Iran. His remarks eased concerns over an immediate military confrontation in the Middle East, reducing fears of potential disruptions to global oil supplies.
The US president said the planned military operation was cancelled following requests from Saudi Arabia, the United Arab Emirates, Qatar, Iran, and other regional stakeholders. He added that several US allies in the Middle East supported efforts to resolve the situation through negotiations.
International oil markets reacted immediately to the announcement. Brent crude dropped by $4.08 per barrel to $83.85, while US West Texas Intermediate (WTI) crude declined by $4.01 to $80.66 per barrel.
Trump said negotiations with Iran were expected to begin soon and expressed optimism about reaching an agreement instead of resorting to military action. He also stated that understandings had already been reached regarding the Strait of Hormuz, a key global oil shipping route.
The US president further said he believed a deal could be reached to prevent Iran from developing nuclear weapons. However, he warned that if diplomatic efforts failed, the possibility of renewed tensions and further escalation would remain.
The latest drop in oil prices follows a period of significant gains in global energy markets. Last month, renewed US strikes on Iran and reported Iranian attacks on oil tankers near Oman pushed both Brent and WTI crude prices up by more than 20 percent, raising concerns over energy security and supply disruptions.
Market analysts said investors will continue to closely monitor developments in the planned US-Iran talks, as any progress or setback could have a significant impact on global oil prices and energy markets in the coming weeks.
Also read: Oil Climbs 2% as US-Iran Tensions Intensify
