Global oil prices fell after Trump's announcement. What is known

Oil prices dropped by 9-10% amid the US decision to postpone strikes on Iran's infrastructure due to productive negotiations. All the details are in the Izvestia article.

Market reaction

Global oil prices have shown a sharp decline in the range of 9-10%. As of afternoon trading, the price of June Brent crude futures fell to $97.16 per barrel, marking the first time it had fallen below the $100 mark since March 19. WTI oil also fell significantly, with its price dropping to $88.48.

The negotiation process

US President Donald Trump announced constructive talks with Iran that lasted two days. Due to the positive tone of the discussions, the head of the White House ordered a temporary freeze on plans to launch strikes on the territory of the republic.

"I have instructed the military department to postpone any strikes on Iranian power plants and energy infrastructure for a period of five days," Trump wrote on the Truth Social network.

Earlier, the American leader said that if Iran does not ensure free passage through the Strait of Hormuz within 48 hours, the US military will begin destroying the country's energy facilities, starting with the largest power plant. Now, the president called the success of further meetings, which will continue during the week, a condition for maintaining peace.

Implications for the global economy

The head of the International Energy Agency, Fatih Birol, reported critical damage to the region's energy sector due to the fighting. According to him, more than 40 facilities in nine states were affected, including oil refineries and pipelines. Birol stressed that the restoration of infrastructure will take a huge amount of time.

"More than three weeks of conflict in the Middle East have upended the entire energy supply chain, virtually closing the vital Strait of Hormuz and leading to a sharp rise in oil, natural gas and fuel prices," Bloomberg quoted him as saying.

The risks to the global financial system remain high. MEP Thierry Mariani noted that a new oil shock would be devastating for European countries, as about 20% of the world's oil trade passes through the Strait of Hormuz. According to experts, the current crisis has already surpassed the shocks of the 1970s in its severity.

All important news is on the Izvestia channel in the MAX messenger.