US-Iran Talks Send Oil Prices Plummeting on Strait of Hormuz Hopes

Oil prices declined on renewed optimism about a US-Iran deal to reopen the Strait of Hormuz, after US President Donald Trump announced another round of talks would begin on Monday.

Brent, the benchmark for two-thirds of the world's oil, fell more than 7% during early trade but recovered some ground to trade 5.09% lower at $83.51 a barrel by 7:27 am UAE time.

The drop in crude prices follows last week's wild swings as tensions rose after the US threatened to hit Iran 'very hard', but Trump paused the planned attack after requests from Saudi Arabia, the UAE, Qatar, and Iran.

Trump said any potential agreement would cover the Strait of Hormuz before addressing Tehran's nuclear program, and that Washington would 'hold it' and see how negotiations unfold.