New Delhi, March 23 (IANS) Global oil prices plunged sharply on Monday, with Brent crude falling over 13 per cent, after US President Donald Trump announced a temporary halt on military strikes against Iran and said talks between the two countries were “productive”.

Brent crude futures dropped by around $17, or nearly 15 per cent, to touch a session low of $96 per barrel, while US West Texas Intermediate crude fell about $13, or 13.5 per cent, to $85.28.

The sharp fall came as fears of supply disruption eased following signs of de-escalation in the ongoing conflict.

US President Donald Trump said he has instructed the Department of Defense to postpone planned airstrikes on Iranian power plants and energy infrastructure for five days.

He said the decision was taken after “very good and productive conversations” between the United States and Iran over the past two days.

Gift Nifty futures also followed suit and surged to 23,533.50 as against the last close of 22,465, recording a 1,068.5-point or 4.75 per cent upside.

Around 5.20 pm, the Gift Nifty futures were 853.50 or 3.80 per cent higher at 23,318.50.

In a post on Truth Social, Trump said the pause in military action depends on the progress of ongoing discussions aimed at resolving hostilities in the Middle East.

He indicated that the decision was based on the “tenor and tone” of the talks, suggesting a possible diplomatic breakthrough.

Gold and silver prices in both the MCX and international markets bounced back sharply after Trump’s announcement to delay military strikes on Iranian power plants.

In the global market, spot gold trimmed its losses and was down 2.6 per cent, recovering from a steeper 5 per cent decline earlier.

On the domestic front, MCX gold also saw a strong rebound, cutting its losses to around 3 per cent after falling nearly 10 per cent earlier in the session.

--IANS

pk