Oil prices tumbled sharply on Monday after US President Donald Trump ordered a five-day halt to planned military strikes on Iranian power plants and energy infrastructure, easing fears of escalation in the Middle East conflict.
Brent crude fell more than 15% during the session, dropping to a low of $96 per barrel, breaking below the $100 mark for the first time since 11 March. US benchmark West Texas Intermediate (WTI) also slid 13.5%, falling to a session low of $85.28.
However, by 1130 GMT, Brent rose again to $104 per barrel level, while WTI was at $90.55.
Brent crude prices had surged sharply by more than 60% since the beginning of the Middle east crisis, rising to around $112 per barrel on Monday, before Trump’s announcement.
The surge came as the Middle East conflict pushed oil prices above $100 per barrel after Iran’s attacks on vessels disrupted traffic through the Strait of Hormuz, a key global oil transit route.
On India’s Multi Commodity Exchange, crude oil for April delivery initially rose Rs 362, or 4%, to an intraday high of Rs 9,620 per barrel. However, prices later reversed sharply, plunging Rs 827, or 9%, to Rs 8,431 per barrel, hitting the lower circuit limit, PTI reported.
Earlier in a post on Truth Social, Trump said he has “instructed the Department of War to postpone all military strikes against Iranian power plants and energy infrastructure for a five-day period.”
He added that the pause was subject to the “success” of ongoing “meetings and discussions”.
“Over the last two days, Washington and Tehran have had very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” Trump said.
Earlier, Trump had warned Iran to reopen the Strait of Hormuz within 48 hours or face military action targeting key energy facilities. Tehran had responded by threatening to “irreversibly destroy” critical infrastructure across the region including water systems, and to target power plants supplying electricity to US bases.
The temporary de-escalation has eased concerns over supply disruptions, triggering a sharp fall in oil prices after last week’s rally.
However, the broader outlook remains uncertain. The International Energy Agency (IEA) had earlier warned that the ongoing conflict has triggered a global energy crisis.
Speaking at the National Press Club in Australia, IEA chief Fatih Birol said, “This crisis as things stand is now two oil crises and one gas crash put all together.”
He cautioned that the global economy faces serious risks, adding, “The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible.”
Birol further warned that “no country will be immune to the effects of this crisis if it continues to go in this direction,” stressing the need for coordinated global action.
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