Oil prices declined as much as 5% Monday as investors reduced geopolitical risk premiums following U.S. President Donald Trump’s announcement that he had canceled a planned strike on Iran.
President Trump wrote in a Truth Social post: “The U.S.A. is locked and loaded and ready to go against the Islamic Republic of Iran, at levels of Military Terror, Strength, and Power not seen since World War II. Despite this, we have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to. This would include the Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran’s nuclear threat. Based on this request, I have agreed, for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL. The Country of Israel joins me in this commitment. Get to work, everybody, and get it DONE. Thank you for your attention to this matter! President DONALD J. TRUMP”
Following the news, West Texas Intermediate futures for September delivery fell nearly 6% to $79.66 per barrel, while Brent crude futures for October delivery dropped 5.16% to $83.39 a barrel.
S&P 500 futures rose 0.5% while Nasdaq futures gained 0.8%. European futures were 0.7% higher.
Tehran responded cautiously to Trump’s announcement, with Seyyed Majid Ibn Al-Reza, Iran’s acting defense minister, stating: “Although the enemy’s recent statements are part of a psychological and cognitive warfare campaign, we consider every threat to be real and take it seriously.”
Iran’s Fars International News Agency, linked to the Islamic Revolutionary Guard Corps, rejected Trump’s proposal, describing it in a Telegram post on Sunday as a “wish list.”
By CEO NA Editorial Staff
