Trump's words cause oil market to plummet

International oil prices experienced a sharp decline on Monday, marking their lowest point in over a week. Brent crude futures fell by 8.7%, closing at $88.36 per barrel, while U.S. West Texas Intermediate (WTI) crude futures dropped 7.5% to $82.61 per barrel. These figures represent the lowest closing prices since July 17 and July 16, respectively.

The market's reaction was triggered by the United States' sudden decision to halt airstrikes against Iran over the weekend. This move has fostered hopes for a diplomatic resolution to the ongoing conflict and the potential resumption of shipping activities through the critical Strait of Hormuz.

U.S. President Donald Trump commented on the situation, stating that the United States is currently engaged in "good negotiations" with Iran. He expressed optimism that "something could happen," hinting at a possible agreement between the two nations. However, Trump also issued a stern warning, asserting that the U.S. would resort to "strong military action" if diplomatic efforts prove unsuccessful.

Earlier, U.S. Ambassador to the United Nations, Mike Waltz, had informed "Fox News Sunday" and other American media outlets that President Trump had decided to suspend U.S. attacks on Iran to allow more time for diplomatic initiatives.