Trump Calls Off Iran Strike, Oil Prices Plummet Amid Renewed Negotiations

President Donald Trump announced that he had called off a large-scale military strike on Iran and said the US and Iran would resume negotiations on Monday. The sudden shift in plans sent international oil prices plummeting, with Brent crude falling to $81.55 per barrel and WTI breaking below the $80 mark.

Market expectations for the reopening of the Strait of Hormuz intensified, rapidly unwinding the war risk premium. OPEC+ approved a modest production increase, adding further supply pressure. Analysts noted that the outcome of US-Iran talks will dictate the near-term direction of oil prices.

In response to Trump's announcement, Japanese and South Korean equities faced profit-taking pressure, while US stock futures rose. The yen surged more than 1% against the dollar following a coordinated intervention by Japan and the US.