Live updates: Follow the latest news on US-Iran war
Oil prices fell sharply on Monday afternoon, moments after US President Donald Trump said military strikes on Iran's energy infrastructure have been postponed following talks with Tehran.
Prices had slid 13 per cent at the close of trading, with Brent, the benchmark for two thirds of the world's oil, dropping 9.75 per cent to $99.41 a barrel as of 4.54pm Washington time on Monday. West Texas Intermediate, which tracks US crude, was down 9.34 per cent to $88.89 a 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, unidentified Iranian sources denied having had any direct or indirect contact with Mr Trump.
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 1.4 per cent. Two-year Treasuries' yield rose as much as 11 basis points to exceed 4 per cent for the first time since June. And spot gold fell 2.1 per cent to $4,396.34 an ounce.
The drop in oil on Monday came after weeks of soaring prices. It 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, after the news. The largest cryptocurrency advanced as much as 4.41 per cent and traded at $70,912.41 as of 5.07pm Washington 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.
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