World oil prices turned sharply lower after US President Donald Trump said the US and Iran had had productive dialogues, thereby deciding to suspend plans to attack Tehran's key energy facilities.
President Trump also said that he had instructed the Department of Defense to postpone all attacks on Iranian power plants and energy infrastructure for 5 days.
In the market, WTI oil prices at one point fell as much as 8%, to $90/barrel, while Brent oil also fell by about 8%, retreating to $103.91/barrel.
Earlier, on March 21, President Trump warned Iran that it had 48 hours to reopen the Strait of Hormuz, or the United States would carry out air strikes on energy facilities, starting with the largest complex.
However, after the latest statement, the time when this strategic waterway will be fully restored is still unclear.
On the same day, Goldman Sachs sharply raised its forecast for oil prices. The bank estimates that Brent prices will average $110 per barrel in March and April, significantly higher than its previous forecast of $98 per barrel. WTI prices were also raised to $98 per barrel in March and $105 per barrel in April.
According to Goldman Sachs experts, if oil flows through the Strait of Hormuz only maintain about 5% of normal levels until April 10, oil prices are likely to continue to be under upward pressure.
Last week, geopolitical tensions pushed the price of Brent oil at one point beyond the $110/barrel mark, while US WTI crude oil also approached the threshold of $100/barrel.
In the stock market, major indices weakened simultaneously. Specifically, the Dow Jones Industrial Average and Nasdaq Composite both fell about 2%, while the S&P 500 lost 1.5%, marking the first 4-week series of consecutive declines since 2023.
Source: Dnews
