Global oil markets opened the week with sharp losses after the United States announced a new round of negotiations with Iran aimed at ending months of conflict and restoring safe passage through the Strait of Hormuz, one of the world’s most important energy shipping routes.
Brent crude, the international oil benchmark, dropped nearly 5% to $83.81 per barrel, while US West Texas Intermediate (WTI) crude fell to $80.72 during early trading in Asia.
The decline followed comments by US President Donald Trump, who said fresh negotiations with Iran would begin on Monday after the United States postponed planned military strikes in favor of diplomacy.
The conflict, which erupted in late February following military action involving the United States, Israel and Iran, has disrupted global energy markets and heightened concerns over supplies after the Strait of Hormuz was effectively closed. The waterway is a critical transit route for a significant share of the world’s oil and liquefied natural gas exports.
Trump said the talks would begin on Monday afternoon but did not disclose the location or the officials expected to participate.
Meanwhile, Iranian officials also indicated progress toward reopening the strategic waterway, saying the country was close to reaching an agreement with Oman on a new shipping arrangement through the Strait of Hormuz.
The developments have boosted investor confidence that diplomatic efforts could reduce tensions in the Middle East, improve global energy supplies and ease pressure on oil prices.
