Trump's US-Iran Talks Send Oil Prices Plummeting Again

Oil prices continued to decline on Tuesday after US President Donald Trump announced that talks between the US and Iran were underway to end the West Asia conflict. The Brent crude benchmark fell towards $87 a barrel, down from Monday's 8.7% drop, while West Texas Intermediate was near $81.

Trump's comments came as the two sides paused their attacks on each other, with the President stating that there was a 'good chance' talks would make progress. However, it remains unclear if any substantial discussions were taking place.

The oil market has been volatile this month, initially surging due to hostilities between Washington and Tehran, before slumping when tensions eased in recent days. Traders remain cautious as tanker traffic through the Strait of Hormuz has yet to normalize.

Macquarie Group Ltd. warned that a glut was likely to return by the end of the year if a deal is reached, with a daily surplus of 2 million barrels expected in the fourth quarter.