President Trump’s surprise announcement Monday that he is postponing any military strikes against Iranian power plants for five days sent crude oil prices plummeting about 11%.
The President claimed there had been “constructive” talks to end the hostilities in the Middle East, something denied by some Iranian officials. Still, the announcement was well received by investors.
Trump said on Monday there have been talks between the United States and Iran over the past day in which the two sides had “major points of agreement,” adding that a deal could be done soon to settle the war.
Brent, the global benchmark, fell $12.25 or 10.9% to settle at $99.94 a barrel, the first time in several days when it finished under $100 a barrel.
West Texas Intermediate, the U.S. benchmark dropped $10.10 or 10.3% and finished the trading day at $88.13 a barrel on the New York Mercantile Exchange. Both benchmarks fell as much as 15% at one point during Monday’s trading.