Oil Prices Drop Sharply on Hopes of US-Iran Talks, Yen Steady

Oil prices fell sharply on Monday, driven by mounting expectations that talks between the United States and Iran will soon restart. The potential for a diplomatic breakthrough raised hopes that sanctions on Iranian oil exports could be eased, threatening to boost global supply and pressuring crude benchmarks.

President Trump said that conversations are already in progress, despite Iran previously stating it had no plans for direct negotiations. Markets interpreted the comments as a sign that a resumption of talks could lead to de-escalation and a possible relaxation of oil-related sanctions.

In currency markets, the Japanese yen held onto its recent gains, reflecting its status as a safe-haven asset amid ongoing geopolitical uncertainty. The steady yen contrasted with the sell-off in oil, as traders adjusted positions ahead of any concrete developments from the talks.