Oil prices slide over 5% as US-Iran peace talks resume

International benchmark Brent crude fell more than 5% to approximately $83.40 per barrel early Monday after US President Donald Trump announced the resumption of peace talks with Iran and the cancellation of planned military strikes against Tehran. US benchmark West Texas Intermediate also declined 6% to $79.60 as traders reacted to the prospect of renewed diplomacy easing supply concerns in the Middle East. Trump said key allies in the region, including Saudi Arabia, had urged him to suspend the attacks and prioritize negotiations, according to diplomatic sources.

Hormuz blockade fears recede

The sharp decline marked a reversal from July's 25% surge in Brent prices, which followed renewed hostilities between Washington and Tehran that shattered an interim peace agreement and intensified disruptions extending from the Strait of Hormuz to the Red Sea. Trump reiterated his call for the swift reopening of the strategic waterway — one of the world's most important oil transit routes — which had been effectively closed to commercial shipping amid the conflict. The blockade had raised acute concerns over crude and petroleum product shipments, placing sustained upward pressure on energy markets throughout the past month.

OPEC+ completes output restoration

Major OPEC+ producers approved another modest increase in production quotas, completing the planned restoration of output cuts introduced in 2023. The group retained flexibility to raise supplies further once the Middle East conflict ends, adding to the downward momentum in futures markets. Delegates stated that the alliance would monitor the US-Iran negotiations closely before committing to additional barrels, according to sources familiar with the Vienna-based discussions.