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Oil Holds Gains as Trump Pauses Iran Military Action, Signals Diplomatic Window

Crude prices remained elevated Monday despite President Donald Trump postponing planned military strikes against Iran. Trump cited ongoing negotiations brokered by regional allies, with leaders from Qatar, Saudi Arabia and the United Arab Emirates indicating serious talks with Iran are progressing toward a potential agreement. Brent crude closed up more than 2% at $112 per barrel, while West Texas Intermediate June futures advanced roughly 3% to $108. Prices retreated slightly in after-hours trading when Trump announced the delay. Trump emphasized the Pentagon remains ready for immediate large-scale military action if negotiations fail. Iran confirmed indirect talks continue through Pakistan, though U.S. officials questioned the substance of Tehran's latest proposal. The Strait of Hormuz remains largely closed by Iranian forces, with the global market losing access to approximately 20% of world crude and LNG supplies. Oil inventories have hit record lows amid the geopolitical tension.