Oil prices eased on Monday after United States President Donald Trump announced the postponement of a planned military strike on Iran, easing immediate fears of a wider conflict that could further disrupt global crude supply.
As at the time of writing 09:37 pm (WAT), Brent crude traded at $108.7 per barrel, down 0.56 per cent, while U.S. West Texas Intermediate (WTI) crude stood at $101.8 per barrel, up 0.76 per cent.
Trump disclosed that a scheduled U.S. attack on Iran expected for Tuesday had been put on hold following requests from key Middle Eastern leaders, including Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, Saudi Crown Prince Mohammed bin Salman and United Arab Emirates President Mohammed bin Zayed Al Nahyan.
In a statement posted on Truth Social, the U.S. president said he had instructed American military leadership not to proceed with the planned operation as diplomatic discussions were actively underway.
According to Trump, the regional leaders urged Washington to delay military action on the grounds that serious negotiations were progressing and could produce an agreement acceptable to the United States, Middle East nations and the broader international community.
He said the proposed deal would include guarantees preventing Iran from acquiring nuclear weapons.
Despite postponing the operation, Trump maintained a hardline posture, stating that Defence Secretary Pete Hegseth and Joint Chiefs Chairman Gen. Dan Caine had been directed to remain ready to launch a “full, large scale assault” at short notice if negotiations fail to deliver an acceptable outcome.
The development comes against the backdrop of heightened tensions between Washington and Tehran, centred largely around the Strait of Hormuz, a critical global oil transit corridor that has experienced severe disruptions amid the ongoing conflict.
Supply concerns linked to instability around the strategic waterway have played a major role in recent oil market volatility, with traders closely monitoring any developments that could affect crude flows from the Middle East.
Market sentiment appeared to soften following Trump’s announcement, as the postponement reduced immediate expectations of an escalation that could threaten oil exports and tighten an already strained global energy market.
However, analysts continue to view the situation as fragile, noting that the threat of renewed military action and unresolved negotiations could keep oil markets highly sensitive in the near term.