Oil prices today: Oil falls as Donald Trump postpones energy attacks
Benchmark prices fell 9 per cent to around $US97.50 after US President Donald Trump gave Iran five days to respond to peace talks.
Oil prices tumbled overnight after US President Donald Trump said the US and Iran made strong progress towards a complete peace deal in talks over the weekend.
Mr Trump said he had ordered the US military to postpone all military strikes on Iran’s power plants and energy infrastructure for five days because the peace talks had been productive, an assertion disputed by Iran.
He had previously given a 48-hour deadline for Iran to open the Straight of Hormuz or face “obliteration” of power plants.
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By continuing you agree to our Terms and Privacy Policy.The news sent Benchmark Brent crude prices down 9 per cent to around $US97.50 on Tuesday morning. Global gas and diesel prices retreated from highs stoked by worries around a major escalation in the conflict. Gold prices rebounded slightly to $US4414 an ounce after a three-week sell-off.
Shares on Wall Street jumped. The tech-heavy Nasdaq Index rose 1.4 per cent and S&P/500 added 1.2 per cent. Futures for the S&P/ASX 200 point to a 1.8 per cent rebound at the open on Tuesday.
“I am pleased to report the United States of America and the country of Iran, have had, over the last two days, very good and productive conversations regarding a complete and total resolution our our hostilities in the Middle East,” Mr Trump posted to his Truth Social account.
Iranian state media contradicted Mr Trump’s description of conversations, saying direct or indirect talks didn’t take place between Washington and Tehran.
“Headlines have been very choppy since, with many Iranian officials denying that negotiations are taking place while President Trump effectively doubles-down on the claim,” said Westpac on Tuesday morning. “Markets are left striking a balance between welcoming the tentative news of possible de-escalation while weighing the immense uncertainty still clouding this progress. “
The news of Iran’s denials trimmed gains on US share markets as the Strait of Hormuz remained closed to virtually all shipping, blocking around 20 per cent of the world’s oil and gas supply.
The war’s destructive effects and what the International Energy Agency called the largest disruption to energy supply in history, have stoked fears about a global inflation shock leading to a recession across the world.
