Oil prices crash as Trump signals pause in Iran attacks
Photo: US President Donald Trump (Getty Images)
US President Donald Trump ordered a postponement of strikes on Iran’s energy infrastructure following talks with Tehran. Against this backdrop, global oil prices have plummeted.
According to Trump, over the past two days, the US and Iran have held very productive and constructive talks on resolving conflicts in the Middle East.
He clarifies that the Pentagon had received orders to postpone strikes on Iran’s power plants and energy infrastructure for five days, provided that further negotiations are successful.
"I am pleased to report that the United States of America, and the country of 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. 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," the US President states.
Following this announcement, Brent crude oil prices plummeted.
According to the London ICE exchange, Brent crude is currently trading at around $99.9 per barrel, whereas the price was $112.9 before the announcement.
European natural gas prices have also plummeted.
Updated
According to Fars, Iran has not been in contact with the United States either directly or through intermediaries.
An unnamed source told the agency, while commenting on US President Donald Trump’s remarks about productive talks with Tehran over the past two days.
“There is no direct or indirect contact with Trump. Trump heard that all power plants would be shut down by the targets,” the source told Fars.
Situation around the Strait of Hormuz and Trump’s ultimatum
Iran blocked the Strait of Hormuz following the escalation of the war in the Middle East. Up to 20% of global seaborne oil exports (approximately 20 million barrels per day) passed through the strait, as well as large volumes of liquefied natural gas.
The loss of these supplies caused a sharp spike in oil prices and forced the International Energy Agency to tap into reserves, releasing a record-breaking 400 million barrels onto the market.
At the same time, the US temporarily eased sanctions on Russian and Iranian oil currently on ships at sea.
On March 22, Trump threatened to destroy Iran’s power grid if the Strait of Hormuz was not unblocked within two days.
"If Iran doesn’t fully open, without threat, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various power plants, starting with the biggest one first," he said.
In response, Tehran promised to plunge the Persian Gulf countries into darkness if the United States strikes Iranian power plants.
Iranian forces also threatened to attack desalination plants and American and Israeli information technology infrastructure.
