Crude oil futures fall over 5% as Trump pauses planned Iran strike

Crude oil prices experienced a significant drop of over 5% on Monday morning as US President Donald Trump decided to halt a planned strike on Iran in order to facilitate peace negotiations. At 9:28 am, Brent oil futures were trading at $83.49, marking a decline of 5.05%, while WTI (West Texas Intermediate) crude oil futures settled at $79.70, down 5.85%.

August crude oil futures on the Multi Commodity Exchange (MCX) opened at ₹7620, down 6.08% from the previous close of ₹8113, while September futures opened at ₹7454, down 4.91% from ₹7839. In a recent post on Truth Social, Trump stated that despite having the capacity to target Iran's military with "terror, strength, and power not seen since World War II," the U.S. agreed to postpone any attack following Iran's request.

The agreement included the opening of the Hormuz Strait and the cessation of Iran's nuclear threat. Trump further emphasized that the decision was made to ensure a prosperous future for both the world and Iran, provided they could swiftly reach a deal. Meanwhile, OPEC+ has decided to boost production by 188,000 barrels daily from September.

This adjustment will start in September 2026 and will help countries compensate for any overproduction since January 2024.