Oil price slumps as Trump says he called off Iran attacks

The price of oil slumped on Monday after US President Donald Trump said he was holding off a military attack on Iran planned for Tuesday at the request of Gulf states. The global benchmark Brent crude sank from $112 (£83) to $109 after Trump made the comments on Truth Social. Before the social media post, the price had swung throughout Monday.

Trump warned Iran on the weekend the "clock is ticking", with talks to bring the war to an end apparently stalled. Energy markets have been on a wild ride after Iran effectively closed the key Strait of Hormuz waterway in retaliation for US and Israeli strikes on the country, which started on 28 February. Around a fifth of the world's oil and liquefied natural gas usually passes through the narrow shipping route. The oil market has been reacting swiftly to any signs of progress, or lack of it, towards a peace deal that will reopen the strait. The rise in crude in early trade on Monday came after Trump wrote on social media that Iran had "better get moving, FAST, or there won't be anything left of them", adding "TIME IS OF THE ESSENCE!" The president warned last week that the ceasefire was on "massive life support" after rejecting Iran's demands, labelling them "totally unacceptable". According to news platform Axios, Trump is expected to hold ​a ​meeting on ⁠Tuesday ​with his ​top national security advisers to ​discuss the ​options for military ‌action ⁠regarding Iran. However, oil prices fell back later after reports that an Iranian news agency said the US had accepted a temporary waiver on sanctions of Iran's crude oil during the negotiations, raising hopes of progress in peace talks. Later on Monday, Trump said "serious negotiations are now taking place". In a post on Truth Social, he said he had been asked to hold off a military attack on Iran planned for Tuesday by the leaders of Qatar, Saudi Arabia and the United Arab Emirates. Trump said he had been informed that a deal would be made that is "very acceptable" to the US, adding that there would be "NO NUCLEAR WEAPONS FOR IRAN!" But he warned that the US military would be prepared to "go forward with a full, large scale assault of Iran, on a moment's notice" if there was no acceptable deal reached. Iran has not publicly commented on Trump's latest statement. The rise in energy costs since the conflict began has also pushed up government borrowing costs, as measured by bond yields.

Key points

• Trump warned Iran on the weekend the "clock is ticking", with talks to bring the war to an end apparently stalled.
• Energy markets have been on a wild ride after Iran effectively closed the key Strait of Hormuz waterway in retaliation for US and Israeli strikes on the country, which started on 28 February.
• Around a fifth of the world's oil and liquefied natural gas usually passes through the narrow shipping route.
• The oil market has been reacting swiftly to any signs of progress, or lack of it, towards a peace deal that will reopen the strait.
• The rise in crude in early trade on Monday came after Trump wrote on social media that Iran had "better get moving, FAST, or there won't be anything left of them", adding "TIME IS OF THE ESSENCE!"…