Oil prices slump on potential US-Iran deal to open Strait of Hormuz
Oil prices plunged on optimism that the US and Iran will reach a deal to reopen the Strait of Hormuz after President Donald Trump said fresh talks between the warring sides would begin on Monday. Brent, the benchmark for two thirds of the world's oil , slid more than 7 per cent during early trade but recovered some ground to trade 5.09 per cent lower at $83.51 a barrel at 7.27am UAE time. West…
Oil prices tumbled on Monday amid hopes of a US-Iran deal to reopen the strategically vital Strait of Hormuz, following President Donald Trump's announcement that fresh negotiations between the two nations would commence. Brent crude, the global benchmark, slipped more than 7% during early trade but later recovered slightly to trade 5.09% lower at $83.51 per barrel.
West Texas Intermediate, the gauge tracking US crude, dropped 5.67% to $79.87 per barrel. The recent volatility in oil prices comes after a tense week, with the US threatening to strike Iran "very hard" in response to concerns over its activities near the key waterway. However, Trump opted to halt the planned attack after receiving requests from Saudi Arabia, the UAE, Qatar, and Iran, who believe a diplomatic agreement is possible.
The new negotiations with Iran are set to begin on Monday, with any potential agreement focusing on the Strait of Hormuz before addressing Tehran's nuclear program. US President Trump emphasized that Washington would "hold" the situation and assess the outcome of negotiations before taking further action. Analysts noted that while a deal is still far from fruition, traders remain optimistic that the two sides can reach an accord to at least open the strait, alleviating concerns about potential disruptions to global energy supplies.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
