Global oil prices have fallen by more than 5% after US President Donald Trump announced a pause in military strikes against Iran, raising hopes that tensions in the Middle East could ease.

According to Reuters, the announcement came after nearly two weeks of US military action against Iran. The temporary halt reduced fears that the conflict could disrupt global crude oil supplies, triggering a sharp decline in international oil prices.

Brent crude, the global benchmark, dropped by $5.58 or 5.77% to $91.20 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude fell by $4.91 or 5.50%, settling at $84.40 per barrel.

Market analysts said investors reacted positively to the possibility of a diplomatic solution between the United States and Iran. Reduced concerns over supply shortages encouraged traders to sell oil, pushing prices lower in global markets.

The decline comes after weeks of uncertainty that had driven oil prices higher due to fears that the conflict could affect key shipping routes and energy exports from the Middle East.

US media reported that President Trump ordered a halt to military operations against Iran after 13 days of strikes. The order was reportedly issued on Friday, but officials have not confirmed whether the pause is temporary or marks the beginning of a ceasefire.

Energy markets are now closely watching further developments, as any renewed escalation or breakthrough in diplomatic talks could quickly influence global oil prices in the coming days.