WTI crude oil futures tumbled more than 10% to around $88.50 per barrel on Monday after President Donald Trump signaled a de-escalation by ordering a five-day pause on planned U.S. strikes against Iranian energy infrastructure. The decision came after what Trump described as “constructive” talks with Iran over the previous two days, aimed at resolving the conflict, with negotiations expected to continue this week.
The announcement eased immediate supply concerns that had intensified ahead of a U.S. deadline for Iran to reopen the Strait of Hormuz, a vital corridor for global oil shipments. Markets reacted sharply as the perceived risk of further disruptions to energy infrastructure temporarily receded, shifting investor focus to whether diplomatic efforts will ultimately secure a sustained reopening of the key waterway.
