Global oil prices fell sharply on Monday after U.S. President Donald Trump announced a five-day suspension of planned strikes on Iranian power plants. Reuters reported that oil prices dropped more than 13 percent immediately following the announcement. Brent crude futures fell to around $104 per barrel, down about 7 percent, and at one point declined as much as 15 percent to $96. U.S. West Texas Intermediate (WTI) crude dropped nearly 8 percent to around $90, briefly touching just above $85.

Trump had earlier warned that the United States would attack Iran’s power facilities if Tehran did not fully reopen the Strait of Hormuz within 48 hours. Before the deadline expired, he announced the suspension. In response, Iran’s Revolutionary Guards warned they would strike Israeli power plants and U.S. energy supply bases in the Gulf if attacked. Earlier in the day, oil prices had been rising, with Brent above $113 and WTI near $101.

The International Energy Agency (IEA) cautioned that the Middle East crisis could surpass the severity of the 1970s oil shock or the Russia-Ukraine war’s impact. It decided to release 400 million barrels from strategic reserves to stabilize supply and said further releases could follow if needed.