Oil Price Plummets as Hopes of US-Iran Peace Deal Fades

The price of oil plummeted to below $83 per barrel on Monday as Donald Trump claimed that a peace deal between the US and Iran was 'imminent'. However, the regime in Iran has cast doubt on these hopes by stating that it has no plan to receive or send a delegation for talks. The Brent crude price tumbled over five percent on Monday, following a weekend of rising hopes for a diplomatic off-ramp.

Deutsche Bank analyst Jim Reid said that 'hopes have risen over the weekend of a diplomatic off-ramp' between the US and Iran. However, Patrick Munnelly, market strategist at Tickmill Group, warned that there is still a significant gap between talks resuming and the Strait of Hormuz fully reopening.

Esmail Baghaei, the spokesman for Iran's foreign ministry, stated that an agreement with Oman was not sufficient to reopen the strait. He added that the situation would remain unchanged while US 'aggression' continues.