LONDON – 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 negotiations with Tehran would begin under a diplomatic framework.
According to market reports, the decline followed Trump’s remarks that diplomacy was his preferred option for addressing tensions with Iran.
The US president said the planned attack was cancelled after requests from Saudi Arabia, the United Arab Emirates, Qatar, Iran, and other regional stakeholders.
International oil markets reacted to the development, with Brent crude falling by $4.08 per barrel to trade at $83.85 per barrel. US West Texas Intermediate (WTI) crude also declined by $4.01, reaching $80.66 per barrel.
Trump said talks with Iran were expected to start and expressed his preference for reaching an agreement rather than pursuing military action. He said several US allies in the Middle East also supported diplomatic efforts.
The US president added that agreements were already in place regarding the Strait of Hormuz and said he believed a deal to prevent Iran from developing nuclear weapons could also be reached. He warned that failure of negotiations could lead to further escalation.
The recent decline in oil prices followed a period of sharp increases last month, when renewed US attacks on Iran and reported strikes by Iranian forces on several oil tankers near Oman contributed to a rise of more than 20 percent in both major crude benchmarks.
Market participants continued to monitor developments surrounding the US-Iran talks and their potential impact on global energy supplies.
