Brent Crude plunges 14% below $96 per barrel; Gold & Silver tanks after Trump's truce announcement

Global oil prices dropped sharply on Monday after US President Donald Trump signalled progress in talks between the United States and Iran, raising hopes that the ongoing conflict in the Middle East could move toward resolution. The sudden diplomatic shift triggered a major sell-off in oil markets after fears of supply disruptions had earlier pushed prices sharply higher.

Brent crude, the global benchmark, fell more than 7% to trade below $99 per barrel after earlier climbing to $114 during the day. Meanwhile, West Texas Intermediate (WTI), the US benchmark, dropped around 8% to about $90 per barrel, nearly $10 lower than its earlier trading level as markets reacted to the latest developments.

Trump said the United States and Iran had held “very good and productive conversations” over the previous two days regarding a complete resolution of hostilities in the Middle East. In a post, he also announced that he had instructed the US Department of War to postpone any military strikes on Iranian power plants and energy infrastructure for five days while discussions continue.

The announcement marked a dramatic shift from earlier warnings, when Trump had threatened to “obliterate” Iran’s power plants if Tehran did not reopen the Strait of Hormuz. Iran had responded with strong warnings of retaliation, stating that attacks on its energy infrastructure would trigger strikes on regional facilities and the power networks of countries hosting US military bases.