Oil prices slid more than 3% on Monday after former President Donald Trump indicated further military strikes on Iran were unlikely if nuclear talks and Strait of Hormuz reopening negotiations advanced. The comments eased concerns about potential supply disruptions in the Middle East. Brent crude and U.S. WTI futures both fell sharply as traders priced in reduced geopolitical risk.
Markets had been volatile following recent tensions in the region. Trump's remarks suggest a diplomatic path may be emerging, though officials caution that much depends on the outcome of ongoing talks. The price drop reflects investor optimism that a broader conflict can be avoided.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing