WTI Oil Slumps Below $79 Amid US-Iran De-Escalation Hopes
West Texas Intermediate (WTI) oil prices slid below $79 on Monday as investors unwound the geopolitical risk premium following announcements of a potential agreement between the United States and Iran.
US President Donald Trump said that a large-scale military strike against Iran had been suspended after Tehran agreed to the framework of a deal covering its nuclear program and the reopening of the Strait of Hormuz.
The US President also said that talks between the two countries are scheduled to begin on Monday afternoon, fueling expectations of a de-escalation that could reduce the risk of disruptions to global oil supplies.
However, Iran's Foreign Ministry struck a more cautious tone, with spokesperson Esmail Baghaie saying that Tehran is currently holding no discussions with the United States regarding the reopening of the Strait of Hormuz, while confirming that talks with Oman on the issue are ongoing.