Oil falls after Trump cancels attack on Iran to seek nuclear deal

Oil prices plummeted on Monday as U.S. President Donald Trump unexpectedly called off a planned military strike against Iran. Trump announced he was seeking a swift nuclear deal with Tehran, a move that eased immediate fears of a wider conflict in the Middle East.

Brent crude futures shed $4.65, or 5.29%, to settle at $83.28 a barrel. U.S. West Texas Intermediate (WTI) crude experienced a steeper decline, falling $5.20, or 6.14%, to trade at $79.47 a barrel. This sharp drop erases some of the gains seen in the previous month.

Last month, oil prices surged more than 20% amid escalating tensions between the U.S. and Iran, including attacks on several tankers near the Strait of Hormuz. The increased security concerns had deterred shipping companies from entering the vital Gulf waterway to load oil, contributing to supply worries.

Trump's announcement, made via his Truth Social platform, indicated that Iran and other Middle Eastern nations had requested time to finalize an agreement. This deal, he suggested, would lead to the "Immediate, Complete and Total" reopening of the Strait of Hormuz and an end to Iran's nuclear ambitions. The market now awaits further developments on whether a diplomatic resolution can be reached.

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the Immediate, Complete and Total reopening of the Strait and an end to Iran's nuclear threat