Trump Announces Iran Talks, Oil Prices Plummet on Middle East Hopes

Oil prices fell sharply on Monday after US President Donald Trump announced that fresh talks with Iran would begin later in the day. This development came as a surprise to markets, which had been expecting further escalation of tensions in the Middle East.

The planned talks will cover key issues such as control of the Strait of Hormuz and the denuclearization of Iran. The US president said that negotiations will 'begin tomorrow afternoon', without providing details on the venue or participants.

Iran has been a major source of concern for global energy markets, with tensions in the region leading to higher prices for crude oil. However, Trump's announcement brought some relief, causing both Brent and WTI contracts to fall by over 5% at one point.

The decline in oil prices was also driven by an agreement between Saudi Arabia, Russia, and other key members of OPEC+ to boost production by 188,000 barrels a day from September. This move is seen as a attempt to stabilize global energy markets and reduce the impact of tensions in the Middle East.

In currency markets, the yen extended gains after US and Japanese officials confirmed a joint intervention to prop up the currency. The move was seen as a rare instance of cooperation between the two countries, with Trump calling it 'a signal of friendship' that will bring financial benefits to the US.