Brent and US crude just took a nosedive, and it’s all down to a surprise announcement from the White House.

Here’s what’s happening:

Oil prices tumbled in early Asia trade on Monday after US President Donald Trump announced fresh talks with Iran aimed at ending the Middle East war and reopening the Strait of Hormuz.

It’s been a volatile few months for the oil market. According to cbinews.tv, the war, which began in late February when the United States and Israel attacked Iran, effectively closed the vital waterway, a key route for global oil and gas supplies, sending prices swinging sharply.

That pressure is finally easing.

At around 2250 GMT on Sunday, Brent North Sea crude, the international benchmark, for September delivery was down 4.69 per cent at $83.81 a barrel. Its American counterpart, West Texas Intermediate, dropped 4.67 per cent to $80.72.

Speaking on Sunday, Trump said negotiations would begin on Monday after holding off on major strikes against the Islamic Republic to pursue a deal.

“Now what we’re doing is we’re talking to them in the form of a negotiation. It begins tomorrow afternoon,” he said, without giving details on the venue or who would be at the table.

Just hours after the US called off major strikes, Iran said on Sunday it was nearing a deal with Oman over a new route through the Strait of Hormuz.

More updates to follow on cbinews.tv.

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