What did President Trump announce regarding U.S.-Iran negotiations, and how did it immediately affect oil prices?

President Trump announced that the U.S. and Iran were engaged in talks to end the Middle East conflict and decided to pause strikes against Iran to give negotiations another chance. This announcement triggered a steep decline in oil prices: West Texas Intermediate (WTI) fell below $82 a barrel after losing more than 7% on Monday, and Brent crude sank by the most in over three months to close near $88.

Why are traders still cautious about Middle East stability despite the reported pause in hostilities?

Traders remain cautious because tanker traffic through the Strait of Hormuz — a critical waterway that used to carry one-fifth of daily global oil flows — has yet to normalize, and there is no confirmed evidence of oil moving through it; as energy specialist Scott Shelton stated, 'I don’t think the Middle East is ‘solved’,' emphasizing the need for tangible proof of restored shipping before confidence returns.

Oil Extends Decline as Trump Says in Talks With Iran to End War

Jul 27, 2026

Oil prices fell sharply after President Trump announced US-Iran talks to end the Middle East conflict, pushing WTI below $82. Macquarie Group warned of a potential supply glut by year-end.

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