By Kehinde Adegoke | Reuters
President Donald Trump jolted global energy markets Monday, announcing through social media that the U.S. would postpone military strikes against Iranian energy sites, pending five days of talks aimed at ending Middle East hostilities. The unexpected move sent oil prices tumbling and signalled a potential diplomatic shift.
Benchmark Brent crude prices immediately fell more than 10 per cent to about $100 a barrel. The dollar weakened while global stocks rose.
This statement marked a sharp reversal from Trump’s threat on Saturday to strike Iran’s power facilities unless Tehran reopened the Strait of Hormuz, a key waterway for global oil supplies. As tensions rose, Iran responded defiantly, vowing to keep the strait closed and threatening further attacks on energy infrastructure.
Iranian state media firmly rejected Trump’s claim of ongoing talks. Fars News Agency stated that no direct or indirect negotiations had taken place. Mehr quoted the foreign ministry as saying that any regional peace initiatives should be addressed to Washington rather than Tehran, implying Iran did not see itself as the instigator or party responsible for the current tensions.
Meanwhile, the conflict has already disrupted global energy flows. Britain, France and other allies are preparing a naval mission to defend the strait, though intervention remains uncertain. Saudi Aramco has cut crude supplies to Asia for a second month, and the International Energy Agency is consulting governments on possible releases from strategic reserves.
Analysts warn that a prolonged conflict will continue to drive up oil prices, challenging Trump’s assertion that U.S. oil production can shield America from global market shocks.
