Oil prices dropped by nearly 5% after US President Donald Trump announced the start of new negotiations with Iran and decided to refrain from launching a massive strike against the Islamic Republic, aiming to reach an agreement that would end the war, which entered its sixth month.
On Sunday, Trump informed reporters that the talks would concern the Strait of Hormuz—a route for global energy supplies that has become a key sticking point in the conflict—as well as Iran's denuclearization.
For its part, Iran stated that it is approaching an agreement with Oman regarding a new route through the strait, where an explosion was registered near a tanker on Sunday, highlighting the ongoing volatility of this strategic waterway.
Following Trump's announcement of new negotiations, oil prices fell at the opening of Asian trading on Monday. On Sunday evening, the price of Brent North Sea crude, the international benchmark contract for September delivery, decreased by 4.69 percent to $83.81.
The war between Washington and Tehran has been ongoing since February 28, when the US and Israel launched surprise attacks on Iran, although months of diplomatic contacts led to periods of relative calm.
After the resumption of strikes last month, concerns grew that hostilities could escalate again. Trump threatened to deliver a 'very strong blow' to Iran and considered resuming attacks, including on the energy sector infrastructure, while US embassies in the region remained on high alert.
However, on Saturday, Trump withdrew this threat, stating that 'parameters' for reaching an agreement already existed. 'Now we are talking to them in the form of negotiations. It will start tomorrow afternoon,' Trump told reporters aboard Aeroflot on Sunday, without disclosing details about the location or participants of the talks.
The US President also noted that Iran, along with US partners—Saudi Arabia, the United Arab Emirates, and Qatar—had asked him to refrain from strikes that, according to him, would be 'the biggest attack since World War II.' Nevertheless, Iranian media refuted the claim that Tehran had asked Trump not to launch strikes.
Previously, the collapse of a previous ceasefire agreement, which provided for the resumption of movement through the Strait of Hormuz, led Iran to tighten control over this waterway.
The US President initially argued that the war was necessary to address Iran's nuclear program. Western countries accuse Iran of seeking a bomb, while Tehran insists on the purely civilian nature of this program.
Exchanges of Views
Iranian legislator Hassan Ghashghavi, a representative of the National Security Commission of Parliament, reported on Sunday that mediators are attempting to revive the memorandum of understanding between the US and Iran reached in June. This agreement was not intended as a final peace solution but rather as an intermediate step toward negotiations for a comprehensive treaty, although it did include provisions regarding Hormuz.
Ghashghavi stated: 'They know that the main problem and, essentially, the key to the issue now is the question of the Strait of Hormuz, so yes, there is an exchange of views.' In turn, Iranian President Masoud Pezeshkian wrote on social network X: 'We must strive to make the opponent adhere to what he signed.'
Iran's Agreement with Oman?
Before the start of military actions, free passage through the Strait of Hormuz existed for all vessels; however, during the war, Iran closed the strait and now insists on maintaining control and charging fees, which the US rejects. This dispute triggered the resumption of strikes last month, as Tehran refused to allow ships passage on any route other than one along the Iranian coast.
On Sunday, Esmail Bakaei, a representative of the Iranian Foreign Ministry, told state television that the agreement with Oman, located on the opposite side of the strait, regarding a new route through it is nearing completion. He specified: 'We are going to reach an understanding on a route acceptable to both sides—neither a northern nor a southern route—but one that respects the sovereign rights of both parties and protects our national interests and security.' He emphasized that such an agreement does not mean the reopening of the strait.
The maritime tracking firm Kpler reported on Friday a sharp decline in traffic through Hormuz. On Sunday, the UK Maritime Trade Operations Centre (UKMTO) reported that a tanker off the coast of Oman recorded an explosion near the vessel, though the ship and crew remained unharmed.
