Oil prices plummeted after US President Donald Trump said he had ordered a five-day suspension to any potential strikes against Iranian power plants and energy infrastructure, underscoring how the weeks-long war has driven extreme price swings.
Tehran earlier threatened to completely close the Strait of Hormuz, target power plants in the region, and mine maritime routes across the Gulf if its coastal areas were targeted.
Trump’s latest post — following what he described as “good and productive conversations” with Iranian authorities — came after he threatened to “obliterate” Iran’s power plants if the country did not fully reopen the strait by 23:44 GMT today.
The head of the International Energy Agency said the current crisis was akin to the 1970s oil shock and the fallout from Russia’s invasion of Ukraine combined, while Goldman Sachs said prior to Trump’s post that it projected that oil flows through the strait would remain at 5% of normal levels for six weeks before a slow recovery. Saudi Arabia, meanwhile, forecasts that oil prices will soar past $180 a barrel if disruptions persist until late April.
