Trump's Iran Talks Send Oil Prices Crashing, Yen Soars on Surprise Intervention

Oil prices plummeted by more than 6% to $82.41 as hopes of peace in the Middle East grew, following US President Donald Trump's announcement that talks with Iran will happen on Monday.

Trump had earlier called off an imminent attack on Iran to reach a deal to reopen the Strait of Hormuz and resolve the impasse over Tehran's nuclear capabilities.

The yen jumped suddenly by more than 1% to 155.39 per US dollar, after Japan and the US confirmed joint intervention to prop up the frail currency.

Japan's finance ministry stated that they will not hesitate to take further action if necessary.

Mizuho Bank strategist Masayuki Nakajima noted that while the objective may be to stabilize the yen in the short term, the broader trend of dollar/yen remains broadly yen-negative due to persistent US-Japan interest-rate differentials.