Oil prices decline on supply concerns

Agency Report

Oil prices declined in the global commodity market Monday as supply concerns generated by the U.S. plan to attack Iran deflated sharply.

According to reports, US President Donald Trump had halted plans for a potential attack on Iran, easing worries about supply disruptions from the Middle East.

Brent crude traded at $63.83 per barrel, down around 0.5 per cent from last Friday’s close of $64.13. US benchmark West Texas Intermediate (WTI) was at $59.13 per barrel, down around 0.5 per cent compared with $59.44 last week.

Trump aborted planned military strikes against Iran due to a combination of diplomatic progress, logistical hurdles, and significant pushback from key regional allies, Axios reported Sunday.

“It was really close. The military was in a position to do something really fast,” a US official told the outlet, describing the intensity of the situation.

While the administration and various Middle Eastern countries expected an imminent operation following a Tuesday meeting, the order never came. Trump had initially narrowed down military options against Iranian targets but hesitated as complications surfaced.

One reason that influenced the reversal was a shift of US military assets toward the Caribbean and Asia that left the Middle East insufficiently prepared, with officials noting that “the theater was not ready,” limiting available options.

A decisive factor was a backchannel exchange between US envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi. On Wednesday morning, Araghchi reportedly messaged Witkoff, committing to stop the killing and halt the scheduled execution of protesters.

The developments eased market concerns over potential supply disruptions from Iran, putting downward pressure on oil prices.