After President Donald Trump of the United States stated he had ordered a pause to his threatening strikes on Iranian energy facilities after “very good and productive talks” with Tehran, oil prices plummeted this morning.
Trump posted on his Truth Social platform early today, in all caps, “The United States and Iran have had very good and productive conversations over the last two days about a complete and total resolution of our hostilities in the Middle East.”
He said, “Based on the tenor and tone” of the talks, “witch (sic) will continue throughout the week.” He told the Department of War to put off any and all military strikes on Iranian power plants and energy infrastructure for five days, depending on how well the meetings go.
The North American benchmark, West Texas Intermediate, was selling for less than $90 US, which is more than seven percent less than it was the day before. At the opening of trade, stock markets also went up.
Since the Middle East war started, oil prices have gone up by almost 50% this month.
But after Trump’s promise of a ceasefire today, Brent crude plunged more than 15% during the session, reaching a low of $96 per barrel. This was the first time it has fallen below $100 since March 11. The US benchmark West Texas Intermediate (WTI) also fell 13.5%, reaching a session low of $85.28.
But by 1130 GMT, Brent had gone back up to $104 a barrel and WTI was at $90.55.
Brent crude prices had gone up substantially, by more than 60%, since the Middle East crisis began. Today, before Trump’s declaration, they were around $112 per barrel.
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