Oil prices tumble as Trump signals Iran peace

Global oil prices experienced a sharp decline on Thursday following a sudden shift in tone from U.S. President Donald Trump regarding Iran. Trump announced the cancellation of scheduled strikes against Iran, stating that a peace agreement was close. This abrupt change from earlier threats of further attacks significantly impacted market sentiment and led to a notable drop in crude oil prices.

The price of Brent crude, the international benchmark, fell more than 3% to settle below $90 per barrel. Similarly, the U.S. benchmark, West Texas Intermediate crude, also dropped by over 3%, trading around $87 per barrel. The volatility and subsequent fall in prices occurred after a period of heightened tension where the U.S. and Iran had exchanged fire for a second consecutive day, raising fears of a broader conflict.

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Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening.

President Trump announced his decision to cancel the strikes in a post on Truth Social, explaining that discussions with Iran's leadership had been approved by the United States and several other international partners, including Israel, Saudi Arabia, the UAE, Qatar, Turkey, and Pakistan. He indicated that the naval blockade would remain in effect until the transaction was finalized, with the signing details to be announced shortly. The focus for investors and analysts remains on the potential disruption to shipping in the vital Strait of Hormuz, which normally carries a significant portion of the world's oil supply.

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The naval blockade will remain in full force and effect until this transaction is finalised – time and place of the signing to be announced shortly.