Oil Prices Plunge 8-11% as Trump Announces Productive U.S.-Iran Talks and Pauses Strikes
Crude oil futures dropped sharply Monday after President Trump reported “very good and productive” conversations with Iran aimed at resolving Middle East hostilities. He also ordered a temporary halt on planned U.S. strikes against Iranian power plants and energy sites.
WTI crude fell to around $84-$92 per barrel from recent highs near $100, with Brent sliding to about $103-$105 after topping $110-$114 earlier. Markets reacted swiftly to the de-escalation signal, trimming the risk premium tied to the ongoing conflict and Strait of Hormuz disruptions.
Trump described the talks as ongoing, with potential progress within days, though Iranian officials denied formal negotiations were underway. The announcement eased fears of wider escalation but left traders wary of volatility if talks stall.
Stocks rebounded on the news as lower energy costs supported broader sentiment. The move reflects a classic market response: relief on any hint of reduced geopolitical risk, even amid conflicting signals from Tehran.