Brent crude is down more than 8% in the minutes following a statement by U.S. President Donald Trump that “THE UNITED STATES OF AMERICA, AND THE COUNTRY OF IRAN, HAVE HAD, OVER THE LAST TWO DAYS, VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST”.
Brent crude sunk to around $103 prepared in early trade on Monday, with WTI falling to around $90.
Iranian media has claimed there had been no direct or indirect contact with President Trump.
Early on Monday, Iran’s Islamic Revolutionary Guard Corps (IRGC) appears to have signaled a shift in tone as the deadline set by U.S. President Donald Trump to reopen the Strait of Hormuz approaches, easing earlier threats against civilian infrastructure even as the energy standoff continues to tighten global markets.
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The Strait, effectively closed since late February following U.S. and Israeli strikes on Iran, remains the focal point of the crisis. Roughly 20% of global oil and LNG flows transit the chokepoint, and the disruption has already driven a sharp spike in crude prices and heightened fears of a prolonged supply shock.
In a statement carried by regional outlets, the IRGC denied targeting desalination facilities in Gulf states and instead accused U.S. forces of striking water infrastructure on Iran’s Qeshm Island. The Guards warned that any U.S. attack on Iranian power plants would be an “inhumane act,” citing the cascading impact on hospitals, water systems, and critical civilian services.
The messaging marks a shift from earlier threats issued over the weekend, when Iranian officials warned of sweeping retaliation, including mining large parts of the Gulf and targeting regional energy infrastructure linked to U.S. interests.
At the same time, Tehran maintained that escalation remains on the table. The IRGC reiterated that if Washington proceeds with strikes on Iranian energy assets, it would respond by targeting power plants tied to U.S. operations in the region, along with broader industrial and energy infrastructure.
By Charles Kennedy for Oilprice.com
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