New York, Aug 03 (V7N) – Global oil prices fell sharply on Monday after US President Donald Trump announced that talks with Iran would begin, easing concerns over a potential military escalation in the Middle East.
Brent crude futures dropped more than 4 percent to $83.88 per barrel, according to Reuters, following Trump's announcement that a planned military strike against Iran had been suspended in favor of diplomatic negotiations.
The US president said efforts are underway to reopen the Strait of Hormuz and pursue an agreement on Iran's nuclear program, raising hopes of reduced geopolitical tensions and improved stability in global energy markets.
The decline in oil prices boosted investor sentiment in Western financial markets. US stock index futures moved higher, with S&P 500 futures gaining 0.5 percent, Nasdaq futures rising 0.8 percent, and European stock futures advancing 0.7 percent.
In contrast, Asian markets remained under pressure. Japan's Nikkei 225 index fell about 2 percent, while South Korea's KOSPI dropped more than 4 percent. The MSCI Asia-Pacific Index excluding Japan also declined by around 1 percent.
In the currency market, the Japanese yen strengthened by approximately 0.5 percent against the US dollar, trading at 156.47 yen per dollar.
Meanwhile, falling oil prices also influenced the US bond market. The yield on the 30-year US Treasury bond declined by 3.7 basis points to 5.238 percent, reflecting increased demand for government bonds amid shifting market expectations.
Market analysts said investors will closely monitor the progress of the US-Iran negotiations, as developments could have significant implications for global energy supplies, inflation and financial markets.
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