Oil Prices Slide as Trump Announces Fresh Iran Talks, Easing Supply Fears

Oil Prices Slide as Trump Announces Fresh Iran Talks, Easing Supply Fears

Global oil prices fell sharply in early Asian trading on Monday after United States President Donald Trump announced fresh negotiations with Iran, raising hopes of easing tensions in the Middle East and restoring normal shipping through the strategically vital Strait of Hormuz.

Brent crude, the international oil benchmark for September delivery, dropped 4.69 per cent to $83.81 a barrel as of 2250 GMT on Sunday, while the US benchmark, West Texas Intermediate (WTI), declined 4.67 per cent to $80.72.

The decline followed Trump’s announcement on Sunday that Washington would resume diplomatic engagement with Tehran instead of pressing ahead with major military strikes against the Islamic Republic.

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“Now what we’re doing is we’re talking to them in the form of a negotiation. It begins tomorrow afternoon,” Trump said, without disclosing the venue or those expected to participate in the talks.

Oil markets have remained highly volatile since the conflict between the United States, Israel and Iran escalated in late February, disrupting traffic through the Strait of Hormuz—a critical maritime corridor for global crude oil and liquefied natural gas exports.

The renewed diplomatic push has fuelled optimism that the waterway could soon reopen fully, reducing the risk of prolonged disruptions to global energy supplies.

Adding to the positive sentiment, Iran said on Sunday that it was close to reaching an agreement with Oman on establishing a new shipping arrangement through the Strait of Hormuz, a development that could further stabilise oil exports from the region.

 

Oil Prices Slide as Trump Announces Fresh Iran Talks, Easing Supply Fears