Global oil prices recorded a significant decline after US President Donald Trump announced that a proposed military operation against Iran had been put on hold in favor of ongoing diplomatic negotiations.

According to international media reports, Brent crude oil fell by 1.3 percent to $89.17 per barrel, while US West Texas Intermediate (WTI) crude dropped 1.4 percent to $86.48 per barrel. On a weekly basis, both benchmark oil prices recorded losses of more than 4 percent.

President Trump said on Thursday that plans for military action against Iran had been suspended because important progress had been made in talks with Tehran. The announcement eased fears of an immediate escalation in the Middle East, prompting investors to reduce concerns about possible disruptions to global oil supplies.

However, uncertainty remains. Iran’s state-linked Fars News Agency reported that Tehran has not yet approved any final agreement, indicating that negotiations are still ongoing and key issues remain unresolved.

Market analysts said Trump's comments had an immediate impact on investor sentiment. Analyst Tony Sycamore noted that although the geopolitical situation remains uncertain, the market response was swift and reflected growing hopes for a diplomatic solution.

At the same time, concerns continue over Iran’s threat to close the strategically important Strait of Hormuz. Nearly 20 percent of the world's oil and liquefied natural gas (LNG) shipments pass through the waterway, making it a critical route for global energy supplies.

The US military said commercial vessels are still moving through the strait, but markets remain highly sensitive to developments in the region. Analysts believe oil prices could decline further if tensions continue to ease and a US-Iran agreement is reached. However, any fresh escalation could quickly push prices higher again.