WTI crude oil prices declined sharply on Monday, trading near $92.20 at the time of writing, down more than 5% on the day. Prices dropped from around $100 to an intraday low near $84, marking the weakest level in over a week as tensions in the Middle East showed signs of easing.
The fall came after US President Donald Trump announced a delay in planned military strikes on Iranian energy infrastructure. He described recent discussions as “productive,” which reduced fears of immediate supply disruptions and pushed oil prices lower.
However, the situation remains uncertain. Iranian media reports suggest that no direct or indirect talks have taken place with the US, raising doubts about how long this de-escalation may last.
At the same time, ongoing threats related to the Strait of Hormuz — a key route for global oil shipments — continue to keep markets volatile. Any disruption in this region could quickly impact global supply.
Market experts remain cautious. Vandana Hari, founder of Vanda Insights, noted that while short-term sentiment may stay unstable, the longer-term direction of oil prices will depend on whether supply flows from the Middle East remain uninterrupted.
Meanwhile, the International Energy Agency (IEA) is reportedly in discussions with governments in Asia and Europe about releasing strategic oil reserves. Its Executive Director, Fatih Birol, said such measures could ease prices temporarily but would not fix deeper supply issues caused by the conflict.
Overall, oil markets are still being driven by geopolitical developments, with traders reacting quickly to any political updates or risks to global supply.
