Oil slides 10% as Trump delays strikes, signals progress in Iran talks

2026-03-23 - 18:52

Oil prices tumbled by nearly 10 percent on Monday, hitting their lowest level in a week after Donald Trump announced a five-day delay in planned military strikes on Iranian power facilities, citing progress in talks with Tehran just hours before a previously set escalation deadline. Brent crude futures dropped $11.64, or 10.4 percent, to $100.55 per barrel, while West Texas Intermediate fell $9.66, or 9.8 percent, to $88.57, reflecting market optimism over a possible diplomatic breakthrough. Trump stated that the United States and Iran had reached “key points of agreement,” raising hopes of easing tensions in a conflict that has disrupted global energy markets for four weeks, reports Al-Rai daily. However, risks remain elevated as Islamic Revolutionary Guard Corps warned it would target Israeli infrastructure and facilities supplying US bases in the Gulf if attacks on Iran’s power grid proceed. The conflict has already inflicted severe damage on vital energy infrastructure across the Gulf and brought shipping through the Strait of Hormuz to a near standstill. The route is critical, accounting for roughly 20 percent of global oil and liquefied natural gas flows, amplifying concerns over supply disruptions. Analysts estimate that between seven and ten million barrels per day of Middle Eastern oil production have been affected, tightening global supply. Fatih Birol described the current crisis as more severe than the oil shocks of the 1970s combined, underscoring the scale of the disruption. In response to the supply crunch, Washington has temporarily eased sanctions on Russian and Iranian oil held at sea. Traders indicate that Indian refiners are preparing to resume imports of Iranian crude, while other Asian buyers are weighing similar steps. Meanwhile, China’s state-owned Sinopec signalled it is not planning direct purchases but is seeking approval to tap Iranian reserves. Despite the sharp price drop, market volatility is expected to persist as geopolitical developments continue to drive sentiment and supply outlooks.