Oil slumps on US-Iran deal hopes

(Sharecast News) - Oil prices slumped on Monday amid fresh hopes for US-Iran negotiations. At 0740 BST, Brent crude was down 5.7% at $82.96 a barrel, while West Texas Intermediate was 6.5% lower a $79.21.

Prices fell back as Donald Trump said talks with Iran will begin on Monday after the US refrained from carrying out new strikes against Tehran.

The US President said on Truth Social that at the request of Iran and other Middle Eastern countries, he held off on the biggest attack "since World War II", "subject to being able to rapidly make a deal". A deal would include the "immediate, complete, and total opening of the Hormuz Strait, and an end to Iran's nuclear threat," Trump said.

Speaking to reporters on Air Force One on Sunday, he said: "They knew the extent of the attack because they saw it forming.

"We're talking to them in the form of a negotiation. It begins tomorrow afternoon."

Iranian media has denied that Tehran asked for the strikes to be called off.

Rabobank said: "Obviously we've heard this one before. Iran's Fars news agency reports that 'informed sources' deny that any agreement has been reached on the status of the Strait of Hormuz, and that policy regarding the critical shipping route remains unchanged."