Oil prices decline after U.S. President Donald Trump says he has called off a planned strike on Iran that had been scheduled for Tuesday. The move follows an appeal from Persian Gulf allies, who ask the United States to pause military action as diplomacy progresses. Trump’s remarks indicate the strike is canceled due to the ongoing involvement and requests of regional partners, and the situation is linked to developments around negotiations. Bloomberg reports that Gulf allies characterize the pause as part of a broader effort to allow “serious negotiations” to continue. The reports do not indicate that a negotiated outcome has been reached, but they frame the decision as tied to the current state of talks rather than a resolution of underlying tensions. As a result, investors react by lowering expectations for the immediate disruption risk that a strike could have posed for oil supply and regional stability. The decline in oil comes directly after Trump’s announcement and is presented as a market response to the change in the planned timeline.