Trump's Iran Talks Send Oil Prices Tumbling as Yen Surges on Intervention

Oil prices plummeted on Monday as hopes of peace in the Middle East grew, after US President Donald Trump announced that talks with Iran would happen. The Brent crude futures sank over 6% to $82.41, while global stocks wobbled.

The Japanese yen rose more than 1% to 155.39 per US dollar in a sharp move, sparking speculation of another round of official intervention. Japan and the US conducted coordinated yen-buying intervention and will not hesitate to take further action, according to Japan's finance ministry.

Mizuho Bank strategist Masayuki Nakajima said the objective was likely not to reverse the broader trend of dollar/yen as structural forces remain broadly yen-negative. He added that the secular depreciation trend in the yen has fundamentally changed.