Oil Prices Plummet as Iran Deal Hopes Revive; Yen Spikes in Surprise Intervention

Oil prices plummeted more than 6% on Monday after US President Donald Trump announced that talks with Iran would happen on the same day, reviving hopes of a peace deal. The news led to a sharp decline in crude futures, which sank to $82.41 for Brent. In contrast, S&P 500 and Nasdaq futures rose modestly, increasing by 0.4% and 0.6%, respectively.

The yen suddenly spiked more than 1% against the US dollar after Japan and the US confirmed a joint intervention to prop up the currency, which had been sliding to fresh 40-year lows. The Japanese finance ministry emphasized that they would not hesitate to take further action if necessary, citing structural forces behind the yen's decline.

Analysts were divided on the motivations behind the intervention. While some saw it as a genuine effort to support Japan, others viewed it as a 'friendship trade' aimed at boosting Trump's image. Nick Twidale, chief market strategist at ATFX Global, warned that the market may eventually correct the move once the intervention has finished.