WTI drops over 6% to $79.10 as Iran strike pause cuts Hormuz premium
Original: Oil prices tumble after Trump calls off attack on Iran View original →
West Texas Intermediate futures fell more than 6% to $79.10 a barrel as of 8:00 a.m. ET, while Brent crude lost more than 5% to $82.99, after President Donald Trump said a planned U.S. strike on Iran had been called off. The commodity move was large enough to clear the Tier-1 filter because it directly repriced geopolitical supply risk around the Strait of Hormuz.
CNBC reported that Trump said Iran and other Middle Eastern countries had asked Washington to hold off because the “perimeters of a deal” had been agreed to. The same report said the proposed framework included the “Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT” and an end to Iran’s nuclear threat. Those details matter because Hormuz remains one of the key transit points for global crude and LNG flows.
The market reaction was not a routine daily recap. WTI moved by more than $5 per barrel from the previous risk premium zone, and Brent moved below $83 despite ongoing uncertainty over whether Tehran accepts Washington’s version of the talks. CNBC also cited Iranian state-linked commentary pushing back on the U.S. framing, which keeps event risk attached to the next diplomatic statements and shipping data.
For energy equities, refiners, airlines and inflation-linked trades, the immediate number is the size of the crude move rather than a long-run oil call. A sustained reopening of Hormuz would remove part of the conflict premium, while renewed strikes or tanker incidents would put the same premium back into front-month contracts quickly.
The next checkpoints are official U.S. and Iranian statements on the talks, vessel traffic through Hormuz, and front-month Brent/WTI spreads during the New York session.
Not investment advice. Verify all figures with primary sources before acting.
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Iran said it seized two container ships in the Strait of Hormuz after reports of three attacks; Brent briefly topped $100 before trading 0.5% higher at $99.03.
A US-Iran peace deal framework is advancing, with proposed terms including a freeze on Iran's nuclear enrichment, release of frozen Iranian assets, and reopening of the Strait of Hormuz to commercial shipping. Iran is expected to respond formally within 48 hours through Pakistan as mediator. Brent crude has fallen 14% from $126 to around $108, with WTI dropping below the $100 psychological level. Equity futures rallied broadly on the development.