Oil Prices Plummet as US-Iran Talks Resume Amid Middle East Tensions

Oil prices plummeted more than 7% after President Donald Trump announced new talks with Iran. The development sent shockwaves through the market, causing Brent crude to drop as much as 7.3% intraday to $81.55 a barrel.

Brent had surged about 25% in July as tensions escalated in the Middle East, marking its biggest monthly gain since March. However, it remains unclear whether oil shipments will return to normal in the region.

The Strait of Hormuz, through which about 20% of global oil and liquefied natural gas shipments pass, has seen increased security concerns after a vessel carrying Qatari LNG was hit by a projectile last week.

OPEC+, the group of major oil producers, approved a modest increase in output, effectively restoring almost all production cuts implemented since 2023. This move leaves room for further supply increases if tensions in the Middle East subside.