Oil Prices Plummet on Middle East Hopes, Yen Rises Amid Joint Intervention

Crude oil prices plummeted Monday as US President Donald Trump announced fresh talks with Iran would begin later in the day, signaling hopes for a resolution to the Middle East conflict.

The drop was also attributed to an agreement between OPEC+ members, including Saudi Arabia and Russia, to increase production by 188,000 barrels per day from September.

Trump's announcement of negotiations with Iran covered the Strait of Hormuz, a crucial energy supply route that has been a key sticking point in the conflict. The US President said talks would begin 'tomorrow afternoon', without providing further details on the venue or participants.

The news sent oil prices tumbling, with both contracts falling more than 5% at one point. Investors were also keeping a close eye on currency markets after Trump confirmed that the United States had intervened jointly with Japan to support the yen, calling it 'a signal of friendship'.