Oil Falls After Trump Says Iran Strike Plan Is on Hold

Oil prices declined after President Donald Trump said he had put a planned military strike on Iran on hold.

Bloomberg reported on May 18 that West Texas Intermediate for July delivery fell below $103 a barrel. Brent also ended trading around $112 a barrel.

Crude had surged a day earlier amid concerns that geopolitical risks in the Middle East could disrupt supply. Fears of a prolonged closure of the Strait of Hormuz and uncertainty over negotiations with Iran had fueled the rally.

Prices retreated after Trump said the planned attack on Iran had been delayed.

In a Truth Social post on May 18, Trump wrote that the leaders of Saudi Arabia, Qatar and the United Arab Emirates had asked him to postpone the planned strike because serious negotiations were under way. The US remains prepared for military action, he added, but would move ahead only if talks collapse. He did not give a specific deadline.

Mark Malek, chief investment officer at Muriel Siebert, said shelving the planned attack was a positive signal. It also underscored how uncertain the negotiations remain.

Separately, Iran's semi-official Tasnim News Agency reported that the US had proposed temporarily easing sanctions on Iranian oil until a final agreement is reached. A US government official denied the report, Bloomberg said.

In another move, the US announced a new sanctions exemption allowing sales of already-shipped Russian crude and petroleum products even after an earlier waiver expired.