DistantNews
Support us
🇹🇼 Taiwan /Economy & Trade

Trump's statement on Iran triggers over 4% drop in oil prices

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • International oil prices plummeted by over 4% on Monday during Asian trading hours.
  • The drop followed a statement by U.S. President Trump indicating he had called off planned strikes against Iran.
  • Investors reduced their geopolitical risk premium, leading to significant price declines for both West Texas Intermediate and Brent crude futures.

International oil prices experienced a sharp decline of over 4% during Monday's Asian trading session, driven by a sudden shift in geopolitical sentiment. The catalyst for the sell-off was a statement from U.S. President Donald Trump, who announced he had decided to cancel planned strikes against Iran.

Following Trump's declaration, investors rapidly adjusted their risk assessments, leading to a significant reduction in the geopolitical risk premium previously factored into oil prices. This reassessment triggered substantial drops in futures contracts for both major crude benchmarks.

Specifically, the price of West Texas Intermediate (WTI) crude for September delivery fell by 4.8%, settling at $80.63 per barrel. Similarly, Brent crude for October delivery saw a 4.72% decrease, closing at $83.77 per barrel. The market reacted swiftly to the perceived de-escalation of tensions in the Middle East.

Iran and other Middle Eastern countries just asked us to delay any attack, because the deal of the scope has been agreed upon.

— Donald TrumpStating the reason for canceling planned strikes against Iran.

Trump's announcement, made via Truth Social, stated that Iran and other Middle Eastern nations had requested a pause on any attacks, with an agreement reportedly reached. He suggested this proposed agreement would involve the "immediate, full, and total opening of the Strait of Hormuz and an end to Iran's nuclear threat." The U.S. president had been contemplating further action against Iran as diplomatic avenues appeared increasingly dim.

Tehran's response to Trump's statement was cautious. According to Iranian state media, Iran's acting defense minister, Seyed Majid Ebne Reza, indicated that while the enemy's statements might be part of psychological warfare, "we consider every threat to be real and take it seriously." Meanwhile, the semi-official Fars news agency, affiliated with the Islamic Revolutionary Guard Corps, dismissed Trump's proposal as a "wish list."

Although the enemy's recent statements are part of psychological and cognitive warfare, we consider every threat to be real and take it seriously.

— Seyed Majid Ebne RezaIran's acting defense minister commenting on Trump's statement.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog