Global oil prices fell sharply on Monday after Donald Trump indicated that ongoing discussions between the United States and Iran could lead to an end to the conflict, according to CNN.
Brent crude, the global benchmark, dropped more than 7 percent to around $104 per barrel, after briefly surging above $114 earlier in the day. At one point, prices had plunged by over 13 percent. Meanwhile, US benchmark WTI fell 6.9 percent to about $91.4 per barrel, after hovering near $100.
Despite the decline, oil prices remain more than one-third higher than levels recorded before the United States and Israel launched strikes on Iran on February 28.
In a social media post, Trump said the two sides had held “very good and productive conversations” over the past two days aimed at resolving hostilities in the Middle East. He added that discussions would continue throughout the week.
Trump also announced that he had instructed the US Department of Defense to delay any planned strikes on Iranian energy infrastructure for five days, depending on the progress of talks.
However, Iran denied that any studies were taking place. Officials, citing statements from the foreign ministry, dismissed Trump’s remarks as an attempt to influence global oil prices and buy time.
The shift in tone marks a dramatic reversal from Trump’s earlier warning that the US would “obliterate” Iran’s power plants if Tehran did not reopen the Strait of Hormuz.
Meanwhile, Iran’s Islamic Revolutionary Guard Corps warned it would retaliate against any attacks on its infrastructure and maintain the closure of the strategic waterway. Iranian officials also threatened to target energy and power facilities across the region, including in countries hosting US military bases.
The mixed signals have heightened volatility in global energy markets, with prices swinging sharply amid uncertainty over the direction of the conflict.
