Oil prices fell sharply on Monday after President Donald Trump said he was postponing a planned military attack on Iran. The postponement came at the request of some Middle Eastern countries as "serious negotiations" were underway.
Brent crude fell 1.2% to $107.90 a barrel, while US West Texas Intermediate crude slid 1.4% to $99.66.
Tensions between the US and Iran remain high. Trump's visit to China yielded no progress on the conflict. Rising oil prices are fueling inflation fears globally.
Iran's semi-official Tasnim news agency reported that the US had eased sanctions on Iran. However, US Treasury Secretary Scott Bessent called for adherence to sanctions on Iran.
Drone strikes caused a fire near the Barakah nuclear plant in the UAE. The UAE blamed Iran. The main plant was not damaged.
The Strait of Hormuz remains closed, with both Iran and the US conducting blockades. This disrupts oil shipments, affecting roughly 20% of the world's oil supply.
