US President Donald Trump's surprise announcement of a five-day pause on strikes against Iranian energy sites sent oil prices plummeting by 13% on Monday.
The price of Brent crude sank to $96 per barrel, while European and American shares rose.
However, Iran denied any talks with the US, calling Trump's announcement a tactic to 'manipulate the markets.'
The White House has remained tight-lipped over the intention behind Trump's statement, which came just before US markets opened on Monday.
US markets saw a significant rally, with the S&P 500 jumping 2.2% and two-year Treasury yields tumbling 0.22 percentage points.
WTI crude futures also tanked to 14.25% to reach an intraday low of $84.23 per barrel.
