Global oil prices fell nearly five per cent after the United States announced new talks with Iran, easing concerns over supply disruptions following months of conflict that had threatened shipping through the strategic Strait of Hormuz.
A graphic illustration of barrels of crude oil
Oil prices tumbled on Monday in early Asia trade after US President Donald Trump announced fresh talks with Iran to end the Middle East war and reopen the Strait of Hormuz.
The war, which began in late February when the United States and Israel attacked Iran, has caused oil prices to swing sharply as it effectively closed the waterway, a vital route for global oil and gas supplies.
At around 2250 GMT on Sunday, the price of a barrel of Brent North Sea, the benchmark international oil contract, for September delivery was down 4.69 per cent at $83.81.
Its American equivalent, West Texas Intermediate, fell 4.67 per cent to $80.72.
A file photo of a vessel around the Strait of Hormuz….AFP
Trump said on Sunday that fresh negotiations with Iran will begin on Monday after holding off on major strikes against the Islamic republic to pursue a deal.
“Now what we’re doing is we’re talking to them in the form of a negotiation. It begins tomorrow afternoon,” he said, without providing further details of the venue of the talks or the participants
Hours after the US had called off major strikes on Iran, Iran on Sunday said it was nearing a deal with Oman over a new route through the Strait of Hormuz.
