Live updates: Follow the latest news on US-Iran war
Oil prices fell sharply on Monday afternoon, moments after the US President Donald Trump said military strikes on Iran's energy infrastructure have been postponed following talks with Tehran.
Brent, the benchmark for two thirds of the world's oil dropped 10.28 per cent to $100.70 a barrel at 3.26pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was trading 10.68 per cent lower to $87.74 per barrel.
Mr Trump said he held "very good and productive conversations" with Iran and will order the US military to postpone military strikes against Iranian power plants and energy infrastructure for five days.
"Based on the tenor and tone of these in depth, detailed, and constructive conversations, which will continue throughout the week, I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period, subject to the success of the ongoing meetings and discussions," he wrote on Truth Social.
However, in reports carried by state media, unnamed Iranian sources denied having had any direct or indirect contact with Mr Trump, adding that there have been no negotiations, clouding the prospects of a solution.
Mr Trump’s announcement also sent stocks soaring, but the gains were quickly trimmed after Iran’s media denied having had contact. S&P 500 futures were up 1.6 per cent. Treasuries swung between gains and losses, with the two-year yield at 3.9 per cent. And gold prices dropped 1.9 per cent and the dollar edged lower, according to a Bloomberg report.
The drop in oil prices on Monday came after weeks of soaring prices. The price reached nearly $120 a barrel earlier this month as the war between the US-Israeli alliance and Iran continues, leading to major disruptions to global energy supplies.
Analysts had warned at the time that the destruction of energy infrastructure and continued disruption to supply could keep oil prices elevated.
Gulf producers have lost $15.1 billion in energy revenue since the war began, with at least $10.7 billion in cargoes sitting loaded inside the Strait of Hormuz and unable to reach their destinations, according to the shipping analytics firm Kpler. The firm estimates Hormuz carries $1.2 billion worth of oil, gas and refined products on a normal day.
Bitcoin rises
Meanwhile, Bitcoin rose, along with Treasuries and stock futures, following the news. The largest cryptocurrency advanced as much as 4.30 per cent and traded at $70,746.33 as of 3.39pm UAE time. Smaller tokens including Ether and Solana also rose.
Bitcoin briefly slid below $70,000 in New York on Friday as inflation fears tied to the Iran war rattled markets, overshadowing a regulatory win for cryptocurrencies in the US, he said.
Bitcoin fell for three straight days last week after reaching a six-week high of nearly $76,000 on March 17, as volatility in energy and oil markets continues.
Join our Q&A from the energy industry's major summit, CERAWeek, as the Iran war shocks global markets - Wednesday, March 23, 5pm UAE time. Register for free here
