Oil prices plunge 3% on possible peace deal with Iran

President Trumps announced cancellation Thursday of plans to strike Iran within hours over the latest exchange of military strikes sent crude oil prices plunging nearly 3%.

The announcement raised expectations that a peace deal to end more than three months of war was close at hand.

West Texas Intermediate crude fell $2.32 or 2.6% to settle at $87.71 a barrel on the New York Mercantile Exchange.

Brent crude, the global standard, dropped $2.50 or 2.7% to $90.60 a barrel.

However, both standards traded afterward to less than $90 a barrel and Brent, according to OilPrice.com, traded at $89.52 a barrel with a decline of $3.58 or 3.85%.

President Trump stated Thursday in a social media post he had called off strikes on Iran because peace talks had advanced to the highest levels of Iran’s leadership and a broad coalition of regional powers. Details of the final points were not revealed by the President. Earlier in the day, President Trump threatened to hit Iran “very hard” and even talked of capturing Khard Island, a major oil location for Iran.

COMMERCIAL SHIPS CONTINUE TO TRANSIT STRAIT OF HORMUZ

On Wednesday, Iran announced the closure of the Strait of Hormuz, including for oil tankers and commercial ships, saying any vessel attempting to pass through would come under fire.

The waterway handles about 20% of global oil and gas shipments. Iran blocked it after being attacked by the U.S. and Israel at the end of February, and oil prices surged.

Natual gas prices also fell in Thursday’s trading, settling at $3.086 MMBtu with a decline of $0.099 or 3.11%.

A majority of Oklahoma Energy stocks finished the day with losses including a 5% decline for Empire Petroleum Corp. and a 4% drop for Devon Energy Corp. On the plus side, USA Rare Earth jumped more than 10% while Stardust Power rose 6%.