Oil Plunges on Hopes of Iran Deal; Yen Surges After Joint Intervention

Oil prices plummeted on Monday as hopes of a peace deal between the US and Iran grew, with Brent crude futures sinking over 6% to $82.41. The sudden downturn was triggered by US President Donald Trump's announcement that talks with Iran would happen on Monday.

Earlier, Trump had called off an imminent attack on Iran in favor of negotiating a deal to reopen the Strait of Hormuz and resolve the impasse over Tehran's nuclear capabilities.

The market's reaction was also influenced by news that Japan and the US conducted coordinated yen-buying intervention, with the Japanese currency rising more than 1% to 155.39 per US dollar in a sudden move.

Mizuho Bank strategist Masayuki Nakajima noted that while the objective of the intervention may not be to reverse the broader trend of dollar/yen appreciation, it could temporarily shift momentum in favor of yen appreciation.