Brent, WTI Slide Nearly 5% as Trump Confirms New Iran Negotiations

Oil prices declined by almost five percent on Monday after US President Donald Trump announced that fresh diplomatic talks with Iran would begin in a bid to end the ongoing conflict and ease tensions surrounding the Strait of Hormuz.

The conflict, which erupted in late February after the United States and Israel launched attacks on Iran, has unsettled energy markets by disrupting movement through one of the world’s most important oil transit routes.

In early Asian trading, Brent crude for September delivery fell 4.69 percent to $83.81 a barrel, while West Texas Intermediate (WTI) lost 4.67 percent to trade at $80.72.

Speaking on Sunday, Trump said negotiations with Tehran would commence on Monday after the United States postponed major military strikes to create room for diplomacy.

“Now what we’re doing is we’re talking to them in the form of a negotiation. It begins tomorrow afternoon.”

The US president did not reveal the location of the negotiations or identify the expected participants.

The announcement came just hours after Iran disclosed that it was nearing an agreement with Oman on a new route through the Strait of Hormuz, a development that could help ease concerns over disruptions to global oil and gas supplies.

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