FX.co ★ Oil Falls as US-Iran Talks to Resume

Crude oil prices fell about 5% to below $80 a barrel on Monday after US President Donald Trump called off a planned military strike on Iran and announced that new negotiations with Tehran would begin. Trump said regional allies, including Saudi Arabia, had urged Washington to prioritize diplomacy, leading him to suspend the attack while efforts continue to secure an agreement to reopen the Strait of Hormuz. Iran denied holding direct talks with the US but reported progress in discussions with Oman aimed at improving shipping conditions through the strategic waterway. Elsewhere, Turkey and Iraq extended a key oil pipeline agreement by one year, bolstering alternative export routes. Kazakhstan also resumed crude intake via the Caspian Pipeline Consortium after a brief suspension, though exports remain exposed to drone attacks on tankers. Meanwhile, OPEC+ approved another modest production increase, completing the scheduled rollback of supply cuts introduced in 2023.