Crude oil prices fell sharply on Tuesday after the announcement of renewed talks with Iran and a hint of a possible military strike, as
investors eased concerns about global oil supplies as the prospect of a diplomatic solution emerged, market analysts said.
US President Donald Trump announced a new round of talks with Iran on Monday, saying that a planned military strike against Iran had been put on hold to create an opportunity for a deal.
Immediately after this, the price of Brent crude in the international market fell by more than 6 percent to $82.41 per barrel, according to Reuters news agency.
According to Trump, the goal of the potential talks is to maintain normal shipping in the Strait of Hormuz and resolve the long-standing standoff over Iran’s nuclear program.
Meanwhile, global stock markets were mixed after the announcement. S&P 500 futures rose 0.4 percent and Nasdaq futures rose 0.6 percent. However, in Asian markets, Japan’s Nikkei index fell 1 percent and South Korea’s Kospi index fell 3.6 percent.
According to analysts, a decrease in Iran-US tensions will increase the likelihood of global energy supplies remaining normal, which is one of the main reasons for the decline in oil prices in the market.