Oil Prices Drop Below $90 Amid US-Iran Diplomatic Talks

On Monday, global oil prices dropped significantly after U.S. President Donald Trump stated that Washington was engaged in "good talks" with Iran, suggesting a potential diplomatic breakthrough.

Brent crude, the international oil benchmark, fell approximately 8.2% to below $90 per barrel, reaching a low of $87.55 during trading. This decline followed a previous surge above $100 per barrel due to escalating tensions in the Middle East.

Trump indicated that there was a good chance of reaching an agreement with Tehran but warned that military action would resume if negotiations failed. His comments came after the U.S. suspended air strikes on Iran following 13 consecutive nights of bombing.

Despite Trump's optimism, regional tensions persisted, with Saudi Arabia reporting the interception of drones targeting its petroleum facilities, allegedly launched from Iraq by Iran-backed groups. Additionally, Houthi rebels in Yemen claimed responsibility for an attack on Saudi Arabia’s East-West Pipeline.