Oil plunges 4% after Trump calls off Iran strikes, signals talks

Oil prices plummeted more than 4% on Wednesday after President Donald Trump announced that negotiations with Iran were in their "final stages," signaling a potential de-escalation of ongoing tensions in the Middle East. West Texas Intermediate futures dropped nearly 5% to $99.08 per barrel, while international benchmark Brent futures fell 5% to $105.64 per barrel. The sharp price decline came as Trump revealed he had called off planned military strikes against Iran at the request of Gulf Arab allies including Qatar, Saudi Arabia, and the United Arab Emirates, saying he was "an hour away" from ordering the attack. Trump told reporters at a U.S. Coast Guard Academy graduation ceremony that achieving the objectives of the mission was more important than rushing to meet deadlines, adding that he was "not in a hurry" to end the conflict. The president claimed that Iran's navy and air force had been effectively destroyed in the strikes already carried out, stating: "Their navy is gone. Their air force is gone. Pretty much everything. The only question is: Are we going to finish this? Are they going to sign some document?" Iran has pushed back against these assertions, with the Revolutionary Guard warning that any new attacks from the United States or Israel would result in the conflict spreading beyond the region. Financial analysts expressed skepticism about the reported diplomatic breakthrough, noting that similar unconfirmed reports have circulated in recent weeks without materializing into a definitive agreement. Danni Hewson, head of financial analysis at AJ Bell, noted that while oil prices retreated following Trump's comments, "it feels like we've been in this situation several times in recent weeks." Unconfirmed reports from Saudi state media Al Hadath suggested a written agreement between Washington and Tehran could be reached within hours, though Iran's foreign minister stated negotiations continue through Pakistan as the intermediary channel.