Oil prices experienced a significant drop on Monday, falling over $4 a barrel, after President Trump decided against immediate military action against Iran. This decision follows Trump's indication that Iran and other Middle Eastern nations have requested time to negotiate a deal concerning the Strait of Hormuz and Iran’s nuclear program. The potential deal aims for the full reopening of the vital shipping lane, which has been threatened by recent attacks on tankers and heightened regional tensions. Despite this de-escalation, analysts remain cautious, fearing the possibility of failed negotiations and further disruption. Recent shipping data shows decreased traffic in the Strait of Hormuz and reports of continued tanker attacks. OPEC+ approved a modest increase in oil production, but previous increases have had limited market impact due to ongoing supply disruptions related to conflicts in Ukraine and the Middle East.