International benchmark Brent North Sea crude plunged more than 14 per cent to $96.00 per barrel.
The main US oil contract, West Texas Intermediate, also shed more than 14 per cent to $84.37 per barrel.
The United States and Iran “have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” Trump wrote, in all capitals, early Monday on his Truth Social platform.
“Based on the tenor and tone” of the talks, “witch (sic) will continue throughout the week, I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five day period, subject to the success of the ongoing meetings,” he added.
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The postponement comes just hours before the expiration of a 48-hour ultimatum issued by Washington, demanding that Iran reopen the Strait of Hormuz.
The plunge comes on the backdrop of escalating conflict in the region. Hostilities, widely referred to as “Operation Epic Fury”, began on February 28, 2026, with a large-scale joint US-Israeli offensive targeting Iranian nuclear facilities, missile bases and senior leadership.
The conflict has since intensified, with Iran reportedly launching retaliatory missile strikes on US military installations in the Gulf and Israeli cities, while also disrupting global shipping by effectively closing the Strait of Hormuz. The disruption has driven oil prices above $126 per barrel and triggered volatility in global markets.
Humanitarian concerns have also mounted, with more than 2,000 deaths reported across Iran, Lebanon and Israel.
Despite the temporary pause in planned strikes, tensions remain high. Iran has warned that any further attacks on its territory could result in the mining of the Persian Gulf, while Israel has continued military operations in Lebanon.
