Oil Prices Plummet on Trump's Iran Talks Announcement

Oil prices plummeted on Monday after US President Donald Trump announced fresh talks with Iran would begin later that day. The price of Brent North Sea crude, the benchmark international oil contract for September delivery, fell by 4.7% to $83.77 per barrel. West Texas Intermediate, its American equivalent, dropped 4.67% to $80.72.

The development came after Trump said negotiations would cover the Strait of Hormuz and ultimately, the denuclearization of Iran. The US president had previously threatened to hit Iran 'very hard' and was considering renewed attacks, including against energy infrastructure.

Investors were also keeping a close eye on currency markets as Trump confirmed that the United States had intervened jointly with Japan to support the yen, calling it a 'signal of friendship'. Officials said they were ready to act again, citing economic security and the US-Japan alliance.