Oil Prices Tumble After Trump Announces Five-Day Halt on Strikes Against Iran Energy Infrastructure

Oil Prices Tumble After Trump Announces Five-Day Halt on Strikes Against Iran Energy Infrastructure

Oil prices fell sharply after U.S. President Donald Trump announced a five-day pause on military strikes against Iran's energy infrastructure following productive talks between the two nations.

The move follows Trump giving Iran a 48-hour deadline to reopen the Strait of Hormuz, which remains closed as Tehran restricts shipping to vessels linked to 'enemies' like the U.S. Global oil supply faces potential disruption with the strait handling about 20% of global exports.

The International Energy Agency has warned of a severe supply crunch, worse than past crises including the 1970s oil shock and the Russia-Ukraine conflict. Meanwhile, Goldman Sachs raised its oil price forecasts, expecting Brent crude to surpass records set in 2008 if the Hormuz flow remains restricted.