Global oil prices fell by nearly five per cent during early trading in Asia on Monday after US President Donald Trump announced a new round of negotiations with Iran aimed at ending the ongoing Middle East conflict and reopening the Strait of Hormuz.
The conflict, which began in late February following attacks on Iran by the United States and Israel, has triggered significant volatility in the oil market after disrupting traffic through the Strait of Hormuz, a critical shipping route for global oil and gas exports.
As of about 2250 GMT on Sunday, Brent North Sea crude, the international benchmark for September delivery, dropped 4.69 per cent to $83.81 per barrel.
Meanwhile, West Texas Intermediate (WTI), the US benchmark, declined 4.67 per cent to $80.72 per barrel.
President Trump said on Sunday that discussions with Iran would resume on Monday after the United States decided to suspend planned large-scale military strikes in favour of diplomatic engagement.
“Now what we’re doing is we’re talking to them in the form of a negotiation. It begins tomorrow afternoon,” he said, without providing further details of the venue of the talks or the participants.
The announcement came just hours after the United States halted its planned military action against Iran.
On Sunday, Iranian officials also disclosed that the country was close to reaching an agreement with Oman on establishing a new maritime route through the Strait of Hormuz.
The renewed diplomatic efforts have raised hopes of easing tensions in the region and restoring normal shipping operations through one of the world’s most strategic energy corridors.
Discover more from LN247
Subscribe to get the latest posts sent to your email.
