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Oil prices drop 6% as Trump confirms Iran talks set for Monday

Oil fell sharply below $80 a barrel after President Trump cancelled a planned military strike and announced US-Iran negotiations would begin that afternoon.

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Oil prices fell more than 6% on Monday to near $79 a barrel following President Trump's announcement that talks between the United States and Iran would begin later that day. The decline reversed a steep climb earlier in the month when oil had jumped over 20% amid concerns of wider Middle East conflict.

Trump said he had called off a planned military operation against Iran after Saudi Arabia, the UAE, and Qatar requested restraint. He framed the shift as a move toward negotiation rather than confrontation, stating talks were set to begin Monday afternoon.

Iran's Foreign Minister Abbas Araghchi said talks between Iran and Oman over control of the Strait of Hormuz were in their final stages. Iran's Foreign Ministry spokesperson Esmaeil Baghaei said the goal is to find a shared management approach to the strait, a critical route for global oil shipments. Trump linked the Hormuz talks to broader denuclearization negotiations, saying "There's a deal on Hormuz and then there will be a deal on the denuclearization of Iran." He declined to set a firm deadline for the talks.

US stock futures rose more than half a percent on the news as investors welcomed reduced geopolitical tension. Bitcoin moved in the opposite direction, falling more than 1% even as oil prices, the US dollar, and bond yields all declined. The US dollar index fell to 99.50 as the US and Japan stepped in to support the yen, which had slid to a 40-year low. The 10-year Treasury yield also slipped under 4.7%.

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