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Trump Halts Planned Iran Attack as Gulf Leaders Seek Deal

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US President Donald Trump said Monday he paused a planned US military strike on Iran after Gulf leaders pushed Washington to allow negotiations more time.

"I have been asked by the Emir of Qatar, Tamim bin Hamad Al Thani, the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud, and the President of the United Arab Emirates, Mohamed bin Zayed Al Nahyan, to hold off on our planned military attack," Trump said in a Truth Social post.

Trump said the regional leaders believe serious negotiations are underway and that "a deal will be made" acceptable to the US, Middle Eastern countries and broader international partners.

"This deal will include, importantly, no nuclear weapons for Iran!" Trump added.

Trump said he instructed Defense Secretary Pete Hegseth, Joint Chiefs Chairman General Daniel Caine and the US military not to proceed with the strike that had been scheduled for Tuesday.

"Based on my respect for the above mentioned leaders, I have instructed Secretary of War, Pete Hegseth, the chairman of the Joint Chiefs of Staff, General Daniel Caine, and the United States Military, that we will not be doing the scheduled attack of Iran tomorrow," Trump said.

"In the event that an acceptable Deal is not reached," Trump said the administration has instructed US forces "to be prepared to go forward with a full, large scale assault of Iran, on a moment's notice."

Brent crude showed limited movement, rising 0.2% to $109.48 per barrel, while West Texas Intermediate gained 1% to $106.52/bbl.

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Weekly Crude Benchmarks Surge on Hormuz Disruptions, Geopolitical Gridlock

Oil benchmarks rose over the week as an escalating geopolitical gridlock and severe maritime security threats in the Middle East overrode short-lived diplomatic optimism.West Texas Intermediate settled at $105.66 per barrel, up from $94.68/bbl the previous week, while Brent closed at $109.18/bbl, up from $100.14/bbl a week earlier.WTI registered weekly gains of 10.48%, while Brent was up 7.79%.The upward weekly trajectory was fueled by the prolongation of an effective closure at the crucial Strait of Hormuz, which eroded global safety buffers and triggered supply anxieties that overshadowed high-level discussions between US President Donald Trump and Chinese President Xi Jinping in Beijing, analysts noted.Trump departed Beijing on Friday after meeting with President Xi during a two-day diplomatic visit to China without securing a breakthrough to end the blockade of the Strait of Hormuz.During a press briefing on Air Force One, Trump said he discussed lifting sanctions on Chinese companies purchasing Iranian oil with Chinese President Xi Jinping."... 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"He'd like to see it opened up," Trump said.Wang Yi, China's Foreign Minister, said Friday that China wants the Strait of Hormuz reopened quickly while supporting efforts to maintain the ceasefire, China's state-owned media outlet Xinhua reported.China believes a permanent and comprehensive ceasefire offers the long-term solution to issues surrounding the Strait of Hormuz, Wang said during a press briefing in Beijing.Wang also said China encourages the US and Iran to continue resolving disputes, including nuclear-related issues, through negotiations.The week began with a sharp rally after President Trump rejected an Iranian peace counteroffer, labeling it "totally unacceptable" and declaring the existing ceasefire to be on "massive life support."This diplomatic collapse dashed market hopes for a quick fix, while momentum amplified as Washington levied new sanctions against an Islamic Revolutionary Guard Corps oil-shipping network accused of using front companies across Oman, Hong Kong, and the UAE to bypass restrictions.The physical severity of the 10-week blockade was laid bare by mid-week industry reports.The International Energy Agency's May oil market report confirmed that an unprecedented 14.4 million barrels per day of Gulf production was shut in, while Bloomberg satellite imagery showed Iranian export terminals grinding to a virtual standstill.ANZ analysts warned that if the chokepoint remains closed, the second quarter of 2026 will suffer the largest quarterly crude inventory drawdown in history at 6.5 mb/d.Crude prices experienced a temporary mid-week reprieve, pausing on Wednesday and retreating on Thursday following reports that Iran had allowed a limited convoy of about 30 vessels to cross the strategic chokepoint.This brief easing coincided with the Trump-Xi summit, though President Trump downplayed any imminent diplomatic breakthrough regarding the energy crisis.Bearish demand revisions also capped gains, as OPEC downgraded its 2026 global demand growth forecast to 1.2 mb/d and the IEA revised its outlook to a demand contraction of 420,000 b/d.Furthermore, OPEC data revealed that its April production had plummeted by 1.73 mb/d to 18.98 mb/d, a steep decline that reflected the final month of the UAE's membership in the producer group.Meanwhile, the Energy Information Administration released its May Short-Term Energy Outlook earlier this week. 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