President Donald Trump announced a five-day postponement of military strikes on Iranian energy infrastructure. He cited productive conversations with Tehran as the reason for the delay.
The conflict has entered its fourth week and effectively closed the Strait of Hormuz. This announcement dominated the CERAWeek energy conference in Houston today.
Brent crude prices fell approximately 7% following the news. The international benchmark reached $103 per barrel.
Shares of major oil companies BP and Shell dropped as inflation fears eased. The de-escalation also impacted investor sentiment for energy sector ETFs like VDE.