Oil Prices Tumble 5 Percent, Trump Calls Off Iran Strike Over Deal

Global oil markets experienced a sharp downturn on Monday following President Donald Trump's announcement that a planned military strike on Iran had been called off. West Texas Intermediate futures dropped roughly 5 percent to close at $80.34 per barrel, while Brent crude fell 4.7 percent to settle at $83.77. The sudden market relief came after weeks of heightened tensions and fading diplomatic prospects in the region.

President Trump stated via social media that the decision to halt the attack was made after receiving direct appeals from Iran and neighboring Middle Eastern countries. According to the administration, the framework of a new agreement includes the complete opening of the strategic Hormuz Strait and the termination of Iran's nuclear program threats.

"We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to," Trump wrote in a public post detailing the diplomatic shift.

Despite the announced breakthrough, conflicting reports emerged regarding direct communications between Washington and Tehran. While the White House indicated that formal negotiations were scheduled to begin on Monday, Iranian state media and Foreign Ministry representatives maintained that talks were strictly limited to transit routes with Oman.

The cancellation of the strike immediately reversed weeks of risk premiums built into energy commodities. Physical delivery contracts and futures markets adjusted downward as traders weighed the prospects of uninterrupted oil flows through the Persian Gulf.