Oil drops over 4% after Trump calls off planned strike on Iran

Oil prices experienced a significant 4% drop on Monday in Asian trading after U.S. President Donald Trump announced the cancellation of a planned strike on Iran. West Texas Intermediate futures for September delivery fell 4.5% to $80.89 per barrel, while Brent crude futures for October delivery declined 4.4% to $84.10 a barrel. Trump's decision to call off the strike followed a request from Tehran and other Middle Eastern countries, which reportedly included the immediate, complete, and total opening of the Hormuz Strait and an end to Iran's nuclear threat.

Iran's acting defense minister responded cautiously to the announcement, acknowledging the seriousness of the threats but considering them part of a psychological and cognitive warfare campaign. Iran's Fars International news agency dismissed Trump's proposal as a "wish list."

Brief written by urgent.news from CNBC's own syndicated text. Machine-written — may contain errors; check the original before relying on it.