Global crude benchmarks fall nearly five per cent after the US president signals renewed diplomacy with Tehran and prospects of easing tensions around the Strait of Hormuz….
Global oil prices fell sharply in early Asian trading on Monday after U.S President Donald Trump announced that Washington would resume negotiations with Iran, easing concerns over supply disruptions linked to the ongoing conflict in the Middle East.
The decline follows optimism that renewed diplomatic engagement could pave the way for reopening the Strait of Hormuz, one of the world’s most critical shipping lanes for crude oil and natural gas exports.
As of around 2250 GMT on Sunday, Brent crude for September delivery had dropped 4.69 per cent to $83.81 per barrel, while West Texas Intermediate (WTI), the US benchmark, slipped 4.67 per cent to $80.72 per barrel.
Oil markets have experienced significant volatility since the conflict involving the United States, Israel and Iran intensified in late February. The crisis effectively disrupted movement through the Strait of Hormuz, triggering fears over global energy supplies and pushing crude prices higher.
Speaking on Sunday, Trump disclosed that the United States would return to the negotiating table with Iran instead of launching the large-scale military strikes that had previously been under consideration.
“We’re talking to them now through negotiations. It begins tomorrow afternoon,” Trump said, without revealing where the discussions would take place or who would participate.
The announcement came just hours after the US reportedly suspended plans for major military action against Iran.
Meanwhile, Iranian officials said the country was close to reaching an agreement with Oman on establishing a new shipping route through the Strait of Hormuz, a development that could help restore confidence in global energy markets and ease concerns over disruptions to oil exports.
Investors will be closely watching the outcome of the renewed talks, as any progress toward de-escalating tensions in the region could continue to influence oil prices in the coming days.
