Global oil prices fell sharply on Monday after U.S. President Donald Trump announced that fresh negotiations with Iran would begin in a renewed effort to end the Middle East conflict and ease tensions over the Strait of Hormuz.
The development raised hopes that diplomatic efforts could prevent further disruptions to global oil supplies, triggering a decline in crude prices during early trading in Asia.
At around 2250 GMT on Sunday, the price of Brent crude, the international benchmark, dropped 4.69 per cent to $83.81 per barrel, while West Texas Intermediate (WTI), the U.S. benchmark, fell 4.67 per cent to $80.72 per barrel.
The decline comes after months of market volatility caused by the conflict involving the United States, Israel and Iran, which began in late February and significantly affected shipping through the Strait of Hormuz—one of the world’s most important oil transit routes.
Speaking on Sunday, Trump confirmed that Washington would resume direct negotiations with Tehran instead of launching new military strikes.
“Now what we’re doing is we’re talking to them in the form of a negotiation. It begins tomorrow afternoon,” Trump said.
The U.S. president did not disclose where the talks would take place or who would participate.
Meanwhile, Iran also announced that it was close to reaching an agreement with Oman on a new shipping route through the Strait of Hormuz, a move widely seen as a positive step toward reducing tensions in the region.
The Strait of Hormuz handles a significant portion of the world’s oil and gas exports, making any disruption to the waterway a major concern for global energy markets.
Investors will be closely watching the outcome of the latest diplomatic efforts, as any breakthrough could further stabilise oil prices and reduce fears of supply disruptions.
Source: AFP
