Oil prices experienced a significant decline Sunday after President Donald Trump announced that U.S. forces would refrain from launching new strikes against Iran. Trump indicated that a resolution to the conflict, which has persisted for over five months, was approaching.
A potential end to the fighting could allow oil shippers to resume operations in the Persian Gulf, a critical waterway where tankers have been held up during the hostilities.
West Texas Intermediate crude oil fell 5% to $80.79 per barrel Sunday night. Brent crude, the international benchmark, also dropped 5% to $83.87 per barrel. Prices for U.S. crude oil remain approximately 20% higher than they were before the conflict began.
Since late February, when the U.S. and Israel initiated attacks against Iran, oil prices have been volatile, exceeding $100 per barrel on multiple occasions during the spring. The elevated oil prices have subsequently impacted the cost of gasoline, jet fuel, and other products reliant on diesel.
Consumers have faced higher prices at the pump and for air travel due to increased jet fuel costs. In some nations, fuel shortages led to rationing and temporary closures of schools and government offices. Meanwhile, oil and gas companies reported substantial profits in the spring, driven by high prices for crude, gasoline, and diesel that resulted from disruptions to shipments through the Strait of Hormuz, a narrow waterway adjacent to Iran, caused by the conflict.