Oil prices fall as Trump calls off strike on Iran

Oil prices dropped on Monday after President Donald Trump said he had called off a planned strike on Iran, prompting investors to pare back the geopolitical risk premium that has weighed on crude markets for weeks. Brent and WTI futures both slid as traders judged the immediate threat to Gulf shipping lanes had eased.

The retreat follows weeks of volatility tied to the conflict, during which fuel costs in Europe and the US climbed on fears that Iran could restrict traffic through the Strait of Hormuz, a corridor that carries a large share of the world's seaborne oil. Refiners and airlines had flagged rising costs as a result.

Analysts cautioned that the reprieve may be temporary, noting that Trump has previously threatened and then withdrawn similar military action. Markets are now watching for any sign that talks between Washington and Tehran, which the president said would resume this week, produce a more durable de-escalation.