Global oil prices experienced a significant drop on Monday, with Brent crude falling by over 13% after US President Donald Trump announced a temporary halt on military strikes against Iran. Brent crude futures plummeted by around $17 to touch $96 per barrel, while US West Texas Intermediate crude fell by about $13 to $85.28.
The sharp decline in oil prices occurred as concerns about supply disruptions eased due to signs of de-escalation in the ongoing conflict. President Trump revealed that he had directed the Department of Defense to postpone planned airstrikes on Iranian power plants and energy infrastructure for five days.
Following productive discussions between the US and Iran, Trump emphasized the importance of ongoing talks in determining the future of military actions in the Middle East. The decision to delay military strikes was influenced by the positive progress and tone of the discussions, hinting at a potential diplomatic breakthrough.
Gold and silver prices, both in the MCX and international markets, saw a notable rebound after Trump’s announcement regarding the postponement of military strikes on Iranian power plants. Spot gold in the global market recovered from a 5% decline to a 2.6% decrease, while MCX gold also showed resilience by cutting its losses to around 3% after a significant drop earlier in the session.
