Oil Prices Plummet as Trump Announces Talks with Iran

Oil prices plummeted on Monday as US President Donald Trump announced that talks with Iran would happen, potentially resolving the impasse over Tehran's nuclear capabilities. The Brent crude futures sank more than six per cent to $82.41 after Trump called off an imminent attack on Iran to reach a deal and reopen the Strait of Hormuz.

The yen saw a sudden spike in value, rising more than one per cent to 155.39 per US dollar following joint intervention from Tokyo and Washington to prop up the currency. The Japanese Finance Ministry confirmed that the two countries conducted coordinated yen-buying intervention and will not hesitate to take further action if necessary.

Mizuho Bank strategist Masayuki Nakajima noted that the objective of the intervention was likely not to reverse the broader dollar/yen trend, as structural forces remain broadly yen-negative. ATFX Global chief market strategist Nick Twidale expressed skepticism about the effectiveness of the intervention, predicting that the market would eventually correct the move once it has finished.

The S&P 500 futures rose 0.4 per cent while Nasdaq futures gained 0.6 per cent. However, Japan's Nikkei dipped one per cent, and South Korea's KOSPI slid 3.6 per cent after a turbulent July in which it slumped 22 per cent.