Trump’s decision to delay military action against Iran triggers a sharp decline in oil prices amid easing geopolitical tensions.
Brent crude futures fell more than 7% to below USD84 in early Asian trading after the US signaled it would pause further strikes on Iran. The move followed President Trump’s announcement that he had canceled planned attacks to pursue diplomatic negotiations, easing immediate supply disruption fears in the Persian Gulf.
OPEC+ agreed to raise collective output by 188k barrels per day in September, completing the reversal of 1.65mn barrels in voluntary cuts from April 2023. However, the Strait of Hormuz remains effectively closed, sustaining concerns over export disruptions and inflationary pressures in key importing regions.
The halt in military action overshadowed OPEC+’s output adjustment, with market focus shifting to potential diplomatic resolutions between Iran and Gulf nations.