TLDR
- WTI crude fell 5.05% to $80.39 as traders reduced Middle East risk premiums Monday sharply.
- Brent crude declined 4% to $84.41 after Trump paused a planned strike on Iran Sunday.
- Trump said Iran and Middle Eastern countries asked Washington to pause military action this weekend.
- Iran said Oman-led talks over the Strait of Hormuz were in final stages on Monday.
- Tehran treated U.S. threats seriously while Guard-linked media dismissed Trump’s proposal as a wish list.
Oil prices fell in Asia trading on Monday after President Donald Trump said he had called off a planned strike on Iran, reducing immediate fears over supply disruption around the Strait of Hormuz.
Oil Drops as Strike Plans Are Paused
West Texas Intermediate futures for September delivery fell 5.05% to $80.39 per barrel as of 4:44 a.m. ET. Brent crude futures for October delivery declined 4% to $84.41 per barrel.
The decline came as traders reduced the war-risk premium built into crude prices. Oil had risen earlier as markets watched threats around the Strait of Hormuz, a key passage for global energy shipments.
Trump said early Sunday that he paused the planned attack after receiving requests from Iran and other Middle Eastern countries. The comments followed days of concern that further military action could raise supply risks.
“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 said in a Truth Social post.
Hormuz Talks Move Into Focus
Trump said the proposed agreement would include the “Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran’s nuclear threat.” He also said talks with Iran would begin Monday afternoon.
The Strait of Hormuz remains central to the market reaction because a large share of global oil shipments passes through the waterway. Any threat to movement through the route can quickly affect crude prices.
Iran responded with caution after Trump’s announcement. Foreign Minister Abbas Araghchi said talks between Iran and Oman over the Strait of Hormuz were in their final stages.
Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said the talks were aimed at finding a mutual mechanism for managing the strait. The comments suggested diplomacy was still active, even as both sides kept firm positions.
Trump said Saudi Arabia, the United Arab Emirates, and Qatar also requested that Washington hold off on military action. He added that a Hormuz agreement could be followed by talks on Iran’s denuclearization.
Iran Keeps Cautious Tone
Trump said the next round of talks would decide further discussions on reopening the Strait of Hormuz and Iran’s nuclear program. When asked about a deadline, he said, “We’ll just see how it is.”
He added, “We’re ready to go any time we want. Would I rather make a deal? I’m not looking to kill people… We don’t want that.”
Iran’s acting defense minister, Seyyed Majid Ibn Al-Reza, said Tehran was still treating threats seriously. He said, “Although the enemy’s recent statements are part of a psychological and cognitive warfare campaign, we consider every threat to be real and take it seriously.”
A news agency linked to Iran’s Revolutionary Guard dismissed Trump’s proposal and called his demands a “wish list.” That response showed that diplomatic progress remains uncertain.
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