Oil prices fell nearly 5% on Monday as U.S. President Donald Trump announced new negotiations with Iran, canceling a planned attack. The decision came after Gulf allies urged the U.S. to hold off, according to Trump. The move aims to reopen the Strait of Hormuz and end tensions in the region.
Trump claimed that an agreement with Iran is imminent, with talks set to begin on Monday. He described the planned attack as "the biggest since World War II" but said diplomacy was prioritized. Iran denied requesting the U.S. to halt the strikes, stating mediation efforts are ongoing.
The cancellation led to a significant drop in oil prices, with Brent crude falling over 5%. Markets reacted to the shift from military action to diplomatic engagement. Analysts are now watching closely to see if the talks will lead to a lasting resolution.
Sources indicate that the decision was influenced by pressure from Gulf allies, who reportedly advised against the attack. Trump emphasized that the U.S. remains committed to denuclearization but is now focusing on dialogue. The outcome of these talks could have major implications for regional stability and global energy markets.
