Oil Prices Plummet as Trump Announces Iran Talks
US President Donald Trump's announcement that he's preparing for new talks with Iran to end the Middle East war sent shockwaves through oil markets, causing crude futures to plummet by over six percent on Monday. West Texas Intermediate fell to $79.46 per barrel and Brent North Sea Crude dropped to $83.40 per barrel.
The decline in oil prices was also attributed to an agreement between Saudi Arabia, Russia, and other OPEC+ members to boost production by 188,000 barrels a day from September. Trump's comments on the potential for new negotiations with Iran were seen as a positive development, as he mentioned that the talks would cover the Strait of Hormuz, a key sticking point in the conflict.
The yen surged against the dollar after US and Japanese authorities confirmed that they had bought Japan's currency on the open markets. This intervention was seen as an effort to weaken the yen and boost exports for countries like Sony and Toyota.