Oil prices fell nearly 5% on Monday as US President Donald Trump postponed a potential attack on Iran, opting instead to pursue diplomatic talks aimed at reopening the Strait of Hormuz (arabnews.Pk). Brent crude futures dropped $4.08, or 4.64 percent, to $83.85, while US West Texas Intermediate crude fell $4.01, or 4.74 percent, to $80.66 a barrel. The decision comes after Trump indicated that negotiations with Iran would begin on Monday, though he did not specify the location or participants (arabnews.Pk).
The US military remains prepared for any scenario, with Secretary of Defense Pete Hegseth stating the forces are “locked and loaded”. Meanwhile, Iran and Oman are reportedly in the final stages of discussions over the Strait of Hormuz, according to Iran’s Foreign Minister Abbas Araghchi. Trump has previously expressed optimism about a swift resolution, though he has yet to set a deadline for an agreement.
Gold prices rose slightly as oil prices declined, reflecting investor concerns over inflation and interest rates. The potential reopening of the Strait of Hormuz could ease global energy tensions, though the situation remains fragile. Trump has suggested new talks may resume soon, but Tehran has not yet responded to the proposal.
