Brent Falls More than 10% as Trump Delays Iran Strikes

Brent crude oil futures plunged more than 10% to around $100 per barrel on Monday after President Donald Trump signaled de escalation by ordering a five day pause on planned US strikes against Iranian energy infrastructure. The move followed what Trump described as constructive talks with Iran over the past two days aimed at resolving the conflict, with discussions set to continue this week. The announcement eased immediate supply fears after heightened tensions tied to a US deadline for Iran to reopen the Strait of Hormuz, a critical route for global oil shipments. Markets reacted sharply as the risk of further disruption to energy infrastructure temporarily declined, while attention now turns to whether diplomatic efforts can lead to a sustained reopening of the key waterway. However, Iran’s Fars News Agency denied any negotiations, attributing Trump’s move to Iran’s threat to strike all West Asian power plants.

Brent crude futures climbed above $113 per barrel on Monday, on track for their highest close since mid-2022 as investors assessed Trump’s ultimatum urging Iran to reopen the Strait of Hormuz. Over the weekend, Trump warned he would “obliterate” major Iranian power plants if the waterway is not reopened to shipping by late Monday. In response, Tehran said it would target US and Israeli assets across the region, including energy, information technology and desalination infrastructure, if its own energy facilities were struck. A senior Iranian official also warned that financial entities purchasing US Treasuries could be considered “legitimate targets.” Oil prices have surged roughly 50% since the Iran war began, as the conflict shows no signs of easing, effectively shutting Hormuz and sharply reducing Middle Eastern oil production. A coordinated release of strategic reserves and US efforts to facilitate the sale of Russian and Iranian oil have so far failed to curb the rally.

Brent crude futures traded above $113 per barrel on Monday after climbing to as high as $115 earlier in the session, as investors assessed President Donald Trump’s ultimatum urging Iran to reopen the Strait of Hormuz. Over the weekend, President Donald Trump warned he would “obliterate” major Iranian power plants if the waterway is not reopened to shipping by late Monday. In response, Tehran said it would target US and Israeli assets across the region, including energy, information technology and desalination infrastructure, if its own energy facilities were struck. Oil prices have surged roughly 50% since the Iran war began, as the conflict shows no signs of easing, effectively shutting Hormuz and sharply curbing Middle Eastern oil production. The IEA has cautioned that the global oil market is facing its largest-ever shock despite a substantial release of emergency reserves and US efforts to facilitate the sale of Russian and Iranian oil.