Trump's Iran Talks Send Oil Prices Plummeting Amid Strait of Hormuz Negotiations

Crude oil prices plummeted on Monday after US President Donald Trump announced that negotiations with Iran would begin later in the day. The talks aim to reopen the Strait of Hormuz, a critical oil chokepoint, and negotiate Iran's nuclear program.

Talks between the US and Iran will focus on re-establishing shipping through the Strait of Hormuz, which carries about one-fifth of global seaborne crude exports. This news eased fears of prolonged supply disruptions in the Middle East, sending Brent crude futures expiring in October down 4.6% to $83.88 a barrel.

US energy stocks also fell sharply in premarket trading, with Chevron (CVX) down 1.2%, Exxon Mobil (XOM) slipping 1.6%, and Occidental Petroleum (OXY) losing around 1.5%. The decline in crude prices weighed on the sector as a whole.

Barclays raised its price target on Chevron to $216 from $213 while maintaining an 'Equal Weight' rating, citing record Permian production, stronger refining margins, and lower capital spending as key positives supporting its revised valuation. Chevron's second-quarter results saw revenue reach its highest level in four years.