Trump's Diplomatic Push Slams Oil Prices Nearly 5%

Oil prices plummeted by nearly 5% on Monday following US President Donald Trump's remarks that he would pursue a diplomatic agreement with Iran instead of launching a fresh military strike.

The Strait of Hormuz, through which roughly a fifth of the world's seaborne oil passes, has remained a focal point for traders as security risks escalated in recent weeks.

Trump's comments fueled hopes of a de-escalation in tensions after crude prices had surged more than 20% last month amid renewed fighting involving the United States and Iran and a series of attacks on commercial vessels near Oman that heightened concerns over energy supplies.

The price drop was also attributed to OPEC+ approval of an increase of about 188,000 barrels per day in oil production quotas from September, completing the rollback of one layer of voluntary production cuts.