Oil prices plunged by over 13 per cent after US President Donald Trump announced that he had instructed the Department of War to postpone strikes against Iranian power plants and energy infrastructure for five days, stating that conversations continue for "total resolution of our hostilities" in West Asia.Brent crude futures had fallen around USD 17, or 15 per cent, to a session low of USD 96 a barrel by 1108 GMT while US West Texas Intermediate (WTI) had fallen USD 13, or about 13.5 per cent, to a session low of USD 85.28, Al Jazeera reported. The report said oil prices fell by over 13 per cent.
In a significant announcement, US President Donald Trump on Monday said he has instructed the Department of War to postpone military strikes against Iranian power plants and energy infrastructure for five days, subject to the success of the ongoing discussions, noting that the United States and Iran had "very good and productive conversation" regarding a total resolution of hostilities in the Middle East.
The announcement came as the war between Israel-US and Iran has entered its fourth week.
In a post on Truth Social, Trump stated that the conversations will continue through the week. "I am please to report 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," Trump said."Based on the tenor and tone of these in depth, detailed, and constructive conversations, witch will continue throughout the week, I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy Infrastructure for a five day period, subject to the success of the ongoing meetings and discussions. Thank you for your attention to this matter!" he added.
There has been worry across the world over the disruptions to energy supply chains due to the war, which started on February 28.Brent crude prices had surged sharply by more than 60 per cent since the beginning of the US-Iran-Israel conflict, rising to around USD 112 per barrel on Monday, before Trump's announcement, from approximately USD 70 per barrel prior to the conflict, reflecting severe disruptions in global energy supply.In just the last 30 days, crude prices had increased by around 56 per cent, highlighting the intensity of the ongoing supply shock.
The sharp rise in oil prices came as the conflict in West Asia has disrupted key supply routes, particularly through the Strait of Hormuz, one of the most important global channels for crude trade.The crisis has also impacted global liquefied natural gas (LNG) flows. The situation has been further aggravated by attacks on energy infrastructure in Qatar.
According to a report by Systematix Research, India's crude oil imports have seen a sharp decline in early March due to disruptions in the region.The report stated, "India's import volume also nosedived to just 1.9mn bbls at week ended 6th Mar vs 25mn bbls per week in Feb'26 and 35mn bbls per week in Mar'26."
It attributed the decline to weakening crude supply from the Middle East amid ongoing tensions.
"Drop is largely attributed to lower volume from Middle East," the report said.The report further highlighted that key suppliers such as Saudi Arabia, Iraq and the UAE have witnessed significant declines in export volumes."
Saudi Arabia dropped to 26mn bbls and 12 mn bbls in the 1st and 2nd week of March vs avg of 42 and 33 mn bbls per week in Feb'26," it added.
The continued disruption in supply chains, coupled with damage to critical energy infrastructure, has intensified concerns over energy availability and pricing, particularly for import-dependent countries like India.
Trump had earlier warned Iran of severe consequences if it fails to reopen the strategically vital Strait of Hormuz, a key global energy transit route.
In an earlier post on Truth Social, Trump stated that if Iran does not "fully open" the Strait within 48 hours, the United States would target and "obliterate" Iranian power plants.
"If Iran doesn't FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!" the post read.
Following this, Iran on Sunday issued a stringent warning to the United States, threatening to target critical energy infrastructure across the region in an "irreversible manner".
In a post on X, the speaker of Iran's Parliament, Mohammad Bagher Ghalibaf, stated that any attack on Iranian power plants or infrastructure would prompt retaliatory strikes on regional energy facilities."Immediately after the power plants and infrastructure in our country are targeted, the critical infrastructure, energy infrastructure, and oil facilities throughout the region will be considered legitimate targets and will be destroyed in an irreversible manner, and the price of oil will remain high for a long time," Ghalibaf stated in his post.
The escalating conflict that began on February 28 with the killing of 86-year-old Iran's Supreme Leader, Ayatollah Ali Khamenei, in joint military strikes by the US and Israel, after which Iran, in retaliation, targeted Israel and US assets in several Gulf countries, causing disruption in the waterways and affecting international energy markets and global economic stability.
Due to the conflict in the region, Iran has virtually closed the Strait of Hormuz. (News agency)