Crude oil prices fell sharply on Hyperliquid after President Donald Trump decided to pause planned military strikes against Iran, a move that eased immediate supply disruption fears. West Texas Intermediate (WTI) dropped to $81, with 24-hour trading volume reaching $181 million, while Brent, the global benchmark, slid to $83—well below last month's peak of $100.
The decision came after reports from CBS and The Wall Street Journal suggested that Trump was poised to bomb Iranian energy infrastructure and other strategic targets. The operation was reportedly set to begin on Saturday and extend over several weeks, aiming to pressure Tehran into a nuclear deal. However, Trump halted the attacks, citing requests from Iran and other Middle Eastern nations.
According to Axios, the pause followed a phone call from Saudi Arabia's Crown Prince Mohammed bin Salman, with other Gulf allies—including Qatar, the UAE, Turkey, and Pakistan—also urging de-escalation. This pattern of last-minute reversals has been dubbed "TACO" (Trump Always Chickens Out) by some observers.
An attack on Iran's critical infrastructure would have marked a dangerous escalation with far-reaching consequences for global energy markets. Iran has repeatedly warned of retaliation against Gulf oil and gas facilities, bridges, power plants, and desalination plants. Strikes on desalination units would be particularly catastrophic, as Gulf nations depend on them for the majority of their freshwater supply, potentially triggering a humanitarian crisis alongside economic turmoil.
Iran has proven a formidable adversary throughout the conflict, launching major attacks on US bases in the region and destroying equipment worth billions of dollars. Tehran has dismissed Trump's claims of ongoing negotiations, insisting that no direct talks are occurring. Iranian officials point to recent US strikes as evidence that diplomatic efforts have collapsed, marking the third time the Trump administration has used military force while claiming to pursue diplomacy.
Meanwhile, concerns about US military readiness have surfaced. The head of European Command recently warned the Pentagon that he lacked sufficient naval assets to continue protecting Israel from incoming ballistic missiles, highlighting potential vulnerabilities in the region.
From a technical perspective, Brent's four-hour chart shows a drop to $83 on Hyperliquid, down from Friday's high of $91. The price has retested the upper boundary of a cup-and-handle pattern and fallen below the 50-period and 100-period exponential moving averages (EMAs), signaling bearish momentum. Further downside toward $80 or lower appears possible, though the highly fluid geopolitical situation leaves markets susceptible to sharp reversals. Any renewed military escalation between the US and Iran could quickly shift sentiment and trigger heightened volatility.
For investors, the oil market remains a key barometer of geopolitical risk. As seen in recent price action, the pause has provided temporary relief, but the underlying tensions persist. The situation echoes earlier episodes where oil spiked on Iran threats, and any escalation could quickly reverse the current downtrend. Traders should monitor diplomatic developments and military constraints that may influence future decisions.
This article is for informational purposes only and does not constitute financial advice.
