US reportedly puts Iran power-plant strikes on hold…international oil prices plunge as much as 10% intraday

Korea Economic Daily

Summary

US President Donald Trump said he had instructed the Pentagon to defer for five days any military strikes on Iran’s energy infrastructure, including power plants.
On news of the pause, May-delivery Brent crude futures fell 10.2% from the prior session to $100.7 a barrel, while April-delivery WTI futures slid 9.7% to $88.7 a barrel.
Vanda Insights founder Vandana Hari said market sentiment may swing short term with threats and rhetoric, but the longer-term direction will be determined by the state of crude transportation in the Middle East.

Forecast Trend Report by Period

International oil prices fell sharply after US President Donald Trump said he had held productive talks with Iran to resolve the Middle East war and, as a result, put on hold for five days the previously signaled strikes on Iranian power plants.

As of 9:00 a.m. Eastern time on the 23rd (local time), May-delivery Brent crude futures were trading at $100.7 a barrel, down 10.2% from the previous session.

April-delivery US West Texas Intermediate (WTI) futures were also trading at $88.7 a barrel, down 9.7% from the previous session.

Brent, the global benchmark, had briefly climbed above $114 a barrel in Asian trading before sliding to around $96 a barrel immediately after Trump’s remarks about holding off on an attack.

However, the decline narrowed somewhat after Iranian media denied the reports of talks with the United States.

In a post on his social media service (SNS) Truth Social, Trump said, "I am pleased to report that over the past two days the United States and Iran have had very beneficial and productive talks to completely and comprehensively de-escalate hostilities in the Middle East region."

He added, "Based on the substance and tone of these deep, detailed, and constructive discussions, I instructed the Department of Defense to defer for five days all military attacks on Iran’s power plants and energy infrastructure."

Earlier, on the 21st, he had warned that he would devastate Iran’s power plants if it did not reopen the Strait of Hormuz within 48 hours.

Meanwhile, Iran’s semi-official Mehr News Agency, citing a source at Iran’s Foreign Ministry, reported the same day that "there are currently no talks whatsoever between Iran and the United States."

The source dismissed the US president’s recent remarks as "political rhetoric aimed at bringing down surging energy prices and part of a deliberate effort to buy time to carry out his military plans."

Separately, Vandana Hari, founder of oil analytics firm Vanda Insights, said, "While sentiment in the oil market can swing in the short term on threats and rhetoric, the sustained direction of prices will be determined by the state of crude oil transportation in the Middle East."

Lee Bo-bae, guest reporter for Hankyung.com newsinfo@hankyung.com