Barely 24 hours after President Donald Trump of the United States (US) announced fresh talks with Iran to end the Middle East war and reopen the Strait of Hormuz, oil prices tumbled on Monday, August 3, in early Asian trade.
New Telegraph reports that the Middle East war led by the United States and Israel 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.
This followed President Trump saying that fresh negotiations with Iran will begin on Monday after holding off on major strikes against the Islamic republic to pursue a deal.
He said, “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.
