President Donald Trump postponed planned military strikes against Iranian energy infrastructure for five days. [3, 4, 6] He cited productive conversations with Tehran aimed at resolving the three-week conflict. [3, 4, 6] The announcement occurred hours before a U.S. deadline for Iran to reopen the Strait of Hormuz. [6, 7]
Brent crude prices plunged more than 10% as supply disruption fears eased. [2, 3, 4, 12] Prices dropped from approximately $112 per barrel to below $100. [2, 3, 12] The sell-off erased a geopolitical risk premium that previously pushed prices toward $120. [12, 17]
Broader markets rallied on hopes of de-escalation. The price drop creates immediate downward pressure on the earnings outlook for oil and gas producers.