Positive effects on energy markets after delay of US strike on Iran
US President Donald Trump announced on Monday, March 23, a five-day delay in launching a military strike on Iranian energy facilities.
Trump said that what he described as “good and constructive” talks are taking place with Iran, noting that discussions will continue until the end of the week.
He added that developments will depend on the outcome of the ongoing meetings and negotiations with the Iranian side.
Iran, however, denied holding any talks with Washington, describing Trump’s statements as an attempt to lower energy prices and buy time to implement military plans.
The Iranian Foreign Ministry said there are “initiatives” from regional countries aimed at reducing tensions, without naming them.
It added, “Our response to all these initiatives is clear: we are not the party that started this war, and all such requests should be directed to Washington.”
In remarks by Omani Foreign Minister Badr bin Hamad al-Busaidi, he said Oman is making intensive efforts to ensure safe passage through the Strait of Hormuz.
Al-Busaidi added that the war in the region has caused widespread economic problems, and its continuation would worsen them.
He did not refer directly to mediation between the US and Iran, but Oman had previously played a mediating role between the two sides before the latest military escalation.
Oil prices fall
Oil prices dropped by more than 13% following Trump’s decision to delay the strike on Iranian energy facilities.
Brent crude futures fell by about $12 to reach $96 per barrel, after hitting $108 earlier on Monday
Brent crude is the benchmark for more than two-thirds of global oil, especially in the Middle East, Africa, and Europe.
Previous threats
On Sunday, March 22, Trump had threatened to bomb Iranian energy facilities unless the Strait of Hormuz was reopened within 48 hours.
He said the United States is prepared to target various Iranian energy sites, starting with major facilities, if threats to the vital waterway continue.
The US threat prompted a reciprocal response from Iran. The spokesperson for Iran’s Khatam al-Anbiya headquarters, Ebrahim Zolfaghari, said Iran would take “punitive measures, including fully closing the Strait of Hormuz and targeting all enemy energy facilities and infrastructure,” if the United States carried out its threats.
Zolfaghari warned against Trump’s threats to target Iran’s energy infrastructure, describing the US president as continuing “aggressive behavior and destabilizing global security,” according to Iran’s Mehr News Agency.
He added that Iran has only restricted the Strait of Hormuz to “enemy movement and harmful attacks,” noting that the vital global energy passage remains under Iranian control and operates under conditions that ensure its security and interests.
Zolfaghari also said Iran’s response would include closing the Strait of Hormuz completely and not reopening it until damaged energy facilities are rebuilt, as well as targeting Israeli energy facilities, infrastructure, and communications systems.
He further warned that Iran could take additional steps, including targeting companies in the region with American shareholders and striking energy facilities in countries hosting US bases.
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