Global oil prices on Monday, 12 Mordad 1405, after Donald Trump announced the suspension of a U.S. military attack on Iran and the start of a new round of talks between the two countries, fell by more than five percent.

Reuters reported that global markets cite the reduced likelihood of military conflict in the Middle East and increased optimism about reaching an agreement between Tehran and Washington as the main factors behind the drop in oil prices. According to the news agency, traders’ concerns about disruption to oil supply and the possible closure of the Strait of Hormuz after Trump’s remarks have decreased.