Global oil prices declined after US President Donald Trump announced a temporary suspension of a planned military strike on Iran scheduled for Tuesday, easing immediate fears of a wider regional conflict and potential disruption to global energy supplies.
According to international market data, the price of Brent crude, the global benchmark for oil, fell from approximately $112 per barrel to $109 per barrel shortly after Trump’s statement on his social media platform, Truth Social. The decline reflected a swift market reaction as investors reassessed the likelihood of an imminent military escalation in the Middle East.
Earlier on Monday, oil prices had experienced significant volatility throughout the trading session. Market sentiment had been driven largely by heightened geopolitical tensions after Trump warned Iran over the weekend, stating that “time is running out”, a remark widely interpreted as signalling possible military action.
Tensions have remained elevated since late February, when intensified military exchanges involving the United States, Israel and Iran contributed to renewed instability across the region. In response to these developments, Iran reportedly moved to effectively restrict access through the Strait of Hormuz, one of the world’s most strategically important maritime routes for energy shipments.
The Strait of Hormuz is a narrow waterway connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea. It serves as a critical chokepoint for global energy transportation, with nearly 20 per cent of the world’s oil and liquefied natural gas (LNG) passing through the route each day. Any threat to shipping activity in this corridor typically triggers immediate reactions in commodity markets.
Energy analysts noted that oil traders remain highly sensitive to diplomatic or military developments involving Iran, particularly because any prolonged disruption in the Strait of Hormuz could sharply tighten global supply and drive prices substantially higher.
| Key Market Indicators | Latest Update |
|---|---|
| Brent crude peak price | $112 per barrel |
| Brent crude after Trump statement | $109 per barrel |
| Price movement | Down $3 |
| Global oil/LNG passing through Hormuz | প্রায় 20% |
| Main market driver | US-Iran geopolitical tensions |
Although prices eased following Trump’s announcement, analysts caution that volatility is likely to persist. The oil market is expected to continue reacting sharply to any signals of either renewed diplomacy or further military confrontation in the region.
Investors are now closely monitoring developments in Washington, Tehran and Tel Aviv, as well as any updates regarding maritime security in the Gulf. While the temporary pause in military action has provided short-term relief to markets, uncertainty over the broader geopolitical outlook continues to weigh heavily on global energy prices.