The Middle East Crisis The Oil Market

Trump: Oil Price Will Drop Like a Rock

As soon as an agreement between the US and Iran is reached, oil prices will drop like a rock. Donald Trump tells reporters, according to Reuters.

An agreement would also mean the opening of the Strait of Hormuz, he says.

– All I'm saying is that we are in the middle of a real opportunity to make a deal, says the president.

Reuters notes that Iran, in turn, has come out and denied Trump's statements about talks.

Oil falls back below $105

Oil prices are falling after President Donald Trump announced that the US will postpone attacks on Iranian energy facilities for five days.

The weekend's threat that the US would level all Iranian energy facilities if the Strait of Hormuz is not opened caused oil to rise on Monday. But when Trump reversed a five-cent mark, so did the oil price chart.

At 12:30, a barrel of Brent oil was trading at $104 after having peaked at $114 in the morning.

Expert on Trump's reversal: "Probably starting to get cold feet"

The oil price is falling sharply and the stock markets are turning up after Donald Trump's announcement that the US is pausing its planned attacks on Iran's energy infrastructure.

- It's probably a sign that Trump is starting to get cold feet. This is a first positive step, says Formue's chief strategist Christian Lie to E24

The announcement dampens concerns about disruptions in the global oil supply after days of escalating threats between the US and Iran, while energy companies are being pressured on the stock market.