Oil prices plummeted on Monday following President Donald Trump’s announcement of productive negotiations between the United States and Iran. This development has prompted Trump to order a temporary halt on military strikes against Iranian energy infrastructure. West Texas Intermediate futures experienced a sharp decline, tumbling 8% to $90.10 per barrel, while Brent crude also dropped approximately 8%, trading at $103.91.
In a statement shared on Truth Social, Trump expressed optimism about the talks, stating, “I am pleased 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.” He further instructed the Department of War to pause any military actions against Iranian facilities for a five-day period.
This announcement follows Trump’s ultimatum to Iran, demanding the reopening of the Strait of Hormuz within 48 hours. However, uncertainty looms over when this crucial shipping route, which usually handles around 20% of the world’s oil supply, will officially reopen.
Goldman Sachs responded to these developments by strongly raising its oil price forecasts. The financial institution now anticipates Brent crude to average $110 in March and April, up from its previous estimate of $98-a significant 62% increase compared to the 2025 annual average. The firm also adjusted its West Texas Intermediate forecasts, projecting prices of $98 in March and $105 in April. Goldman analysts noted that if oil flows through the Strait of Hormuz remain at just 5% of normal levels until April 10, prices could rise further, driven by heightened global demand for stockpiling.
Analysts warned that if the situation persists, Brent prices could surpass the all-time high of approximately $147 per barrel seen in July 2008. That spike was followed by a dramatic crash to about $40 as the global financial crisis tore through demand.
Iranian state media has asserted that Tehran will ensure safe passage through the Strait for all shipping, except vessels associated with “Iran’s enemies.” This insistence adds yet another layer of complexity to the ongoing tensions in the region.
Fatih Birol, the executive director of the International Energy Agency (IEA), characterized the Middle East’s situation as “very severe,” suggesting it is more dire than the oil crises of the 1970s and the impact of the Russia-Ukraine war combined. In response to the disruptions caused by the conflict in Iran, IEA member nations have agreed to release a historic 400 million barrels from strategic stockpiles.
Birol has been in discussions with governments in both Asia and Europe about tapping into additional reserves if necessary, emphasizing that the most critical solution remains the reopening of the Strait of Hormuz.
As the situation continues to unfold, industry experts and governments are closely monitoring developments that could significantly impact global oil supplies and prices.
Original Source: https://www.cnbc.com/2026/03/23/oil-prices-trump-iran-strait-of-hormuz-wti-crude-middle-east-lng-gas.html
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Publish Date: 2026-03-23 16:59:00
