India, March 23 -- Oil prices dropped about 8% on Monday after U.S. President Donald Trump said he would postpone any military strikes against Iranian power plants for five days and cited constructive talks to resolve hostilities in the Middle East, hours before a deadline that threatened to escalate the four-week-old war. Brent futures fell $8.92, or 8.0%, to $103.27 a barrel, while U.S. West Texas Intermediate lost $7.17, or 7.3%, to $91.06.

The price drop came after Trump issued a 48-hour ultimatum over the weekend demanding Iran fully reopen the Strait of Hormuz or face strikes that would "obliterate" its power plants. That deadline was set to expire Monday evening.

What Did Trump Say About Iran Talks?

Trump said in a post on his T...