WTI and Brent crude prices retreat sharply as diplomatic hopes rise following the U.S. decision to halt military action against Iran.
Oil futures plunged in early Asian trading Monday after President Trump abandoned plans for military strikes on Iran, easing fears of a broader conflict disrupting Middle East supply. West Texas Intermediate fell 5.88% to $79.77 per barrel, while Brent dropped 5.07% to $83.47.
The selloff reverses part of July’s 20% rally, which was driven by escalating tensions in the Strait of Hormuz and supply concerns. Both benchmarks had reached multi-week highs last week amid fears of prolonged disruptions.
Markets reacted swiftly to the diplomatic shift, with traders pricing in reduced geopolitical risk premiums.