Oil Prices Dive After Trump Claims Breakthrough in Iran Talks

Oil prices have plummeted after US President Donald Trump announced a breakthrough in talks to end the Iran war. Brent crude oil fell 4.5% to $86.31 per barrel, while benchmark US crude shed 4.3% to $83.90 a barrel. The drop in oil prices comes as investors await the debut of SpaceX on Wall Street, with the company set to become the largest IPO on record, raising around $75 billion. World shares have advanced, with the S&P 500 future up 0.2% and the Dow Jones Industrial Average future up 0.4%. The news has also led to a surge in Asian markets, with South Korea’s Kospi jumping 4.6% and Tokyo’s Nikkei 225 gaining 2.8%. The renewed investor optimism comes after Trump said he had called off military strikes against Iran, asserting that the US had made “a great settlement of the war with Iran”. However, analysts remain cautious, noting that Trump has made similar claims before, only for hostilities to resume. The price of oil has been a major factor in global inflationary pressures, with the Strait of Hormuz, a key waterway for the world’s oil and gas transit, remaining largely closed. An agreement between the US and Iran may help reopen the strait, which has been a major factor in the surge in oil prices. The situation remains fragile, with investors watching closely for any developments in the talks between the US and Iran.