Trump Said He’s Halting Attacks And Resuming Talks With Iran. Oil Prices Are Plunging

Oil prices are falling on Monday after President Donald Trump said he's halting attacks against Iran and resuming talks to end the war.

Brent crude, the international benchmark, fell about 5% and stood just above $83.50 a barrel at 6:36 a.m. ET, while West Texas Intermediate, the U.S. benchmark, dropped 6% and clocked in at $79.59 a barrel at the same time.

Trump said in a social media post on Saturday night that his administration was asked "by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to," including the "Total OPENING OF THE HORMUZ STRAIT, and an end to Iran's nuclear threat."

"Based on this request, I have agreed, for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL," Trump added in the publication.

The following day he told press that "what we're doing is we're talking to them in the form of a negotiation," which is set to begin on Monday. He did not disclose where the conversations would take place or who will be a part of them.

However, Iranian foreign ministry spokesperson Esmail Baghaei rejected the notion, saying the country had only discussed navigation through the Strait of Hormuz with Oman.

Baghaei claimed that the countries are engaging in an effort to "determine, at the earliest opportunity and in consultation with Oman, a route that is naturally temporary and based on which the safety of navigation through the Strait of Hormuz can be ensured."

"This agreement (with Oman) is solely about the mechanism and future shipping route while preserving the sovereign rights of both countries and has no connection to whether the Strait of Hormuz is open or closed," he added.

The spokesperson noted that the route being discussed would be temporary and be a single corridor, rather than two. "Whether this stage and this process can be connected to another process that leads to a reduction of tensions in the region, we must wait and see," he said.

CNN noted that despite the contrasting remarks, up to five million barrels of crude are flowing through the lane closer to Oman. That is about 25% of the pre-war flow.