Global Oil Prices Plunge Over US-Iran Diplomacy

Global oil prices fell sharply on Monday as growing optimism over a possible diplomatic breakthrough between the United States and Iran eased concerns about supply disruptions in the Middle East.

International benchmark Brent crude dropped by more than 10 percent during the day. As of 12:45am Bangladesh time, Brent crude was trading at around US$88.60 per barrel, down from US$91.68 the previous day, according to Anadolu.

At the same time, West Texas Intermediate (WTI) crude, the US benchmark, fell 8 percent to US$82.35 per barrel.

Oil prices had surged last week, with Brent briefly touching US$100 per barrel, amid fears that escalating tensions in the Middle East could disrupt shipments through the Strait of Hormuz and the Bab el-Mandeb Strait, two of the world's most important oil transit routes.

However, prices began to retreat after US President Donald Trump suspended military strikes against Iran on Friday following nearly two weeks of heightened tensions.

On Monday, Trump said Washington and Tehran were engaged in "good talks" and expressed hope that the two sides could reach an agreement. He also warned that military action could resume if negotiations failed.

Iran, meanwhile, said it had also suspended retaliatory military operations and had begun discussions with Oman regarding maritime traffic through the Strait of Hormuz.

Global supply conditions also improved after crude exports resumed from the Caspian Pipeline Consortium (CPC) terminal on Russia's Black Sea coast, one of Kazakhstan's main oil export routes.

Despite the sharp decline in prices, market uncertainty remains. Yemen's Houthi group has claimed responsibility for attacks on facilities linked to Saudi Aramco in Jizan and Yanbu, raising concerns that geopolitical risks in the region have not yet fully subsided.