Doha: Oil prices plunged nearly 5% in early Asian trade on Monday after US President Donald Trump said fresh negotiations with Iran would seek to end the conflict in the Middle East and reopen the Strait of Hormuz. Brent crude futures fell 4.69% to $83.81 a barrel, while US West Texas Intermediate crude dropped 4.67% to $80.72 a barrel.

According to Qatar News Agency, the announcement of renewed talks with Iran has raised hopes for a de-escalation of tensions in the region. This development is seen as a potential avenue for stabilizing oil markets, which have been volatile amid the ongoing conflict. The Strait of Hormuz is a critical passageway for oil shipments, and any disruptions there can significantly impact global oil prices.

The news of the negotiations comes after months of heightened tensions between the US and Iran, which have affected oil supplies and contributed to fluctuations in the energy market. Analysts suggest that successful talks could lead to a more stable geopolitical environment, potentially easing supply concerns and leading to more predictable pricing in the oil industry.