Trump Announces Talks With Iran Amid Middle East Tensions Ease
Oil prices plummeted on Monday as US President Donald Trump announced that fresh talks with Iran would begin later in the day. The development came after a tense standoff between the two countries over control of the Strait of Hormuz, a critical waterway for global energy supplies.
The talks will cover denuclearization and the Strait of Hormuz, an area of contention in the conflict. Trump had threatened to hit Iran 'very hard' but pulled back from that threat on Saturday, saying the 'perimeters' of a deal were in place.
Both Brent and WTI crude contracts fell more than five percent at one point, while investors kept a close eye on currency markets after Trump confirmed a joint intervention with Japan to prop up the yen. The US Treasury had joined with Japan to support the yen for the first time in nearly three decades, according to reports.
Japan's Finance Minister Satsuki Katayama confirmed the joint intervention, saying it 'countered excessive volatility and disorderly movements in the Japanese yen in recent months.'