Crude Oil Prices Tumble as Strait of Hormuz Talks Resume

Crude oil prices plummeted by 5.75% on Monday as talks resumed to reopen the Strait of Hormuz, a key shipping route in the Middle East. The decline was driven by easing tensions between Iran and the US, following President Trump's decision to call off planned strikes on Iran.

The progress made in negotiations with Oman to increase ship traffic through the strait has also contributed to the drop in prices. Saudi Arabia's Crown Prince Mohammed bin Salman spoke with President Trump over the weekend, stressing the need for dialogue to reduce escalation and achieve calm.

Meanwhile, robust crude supplies in China have weighed on oil prices, as Chinese crude inventories remain abundant. Russia's crude production has also fallen due to Ukraine's drone attacks on Russian oil infrastructure, which have damaged refineries and reduced refining capacity.