Oil prices fall as hopes of Iran talks lift global markets
Oil prices fell sharply on Monday, while most global stock markets rose after US President Donald Trump said he was preparing for fresh talks with Iran aimed at ending the Middle East war.
Brent crude and US West Texas Intermediate (WTI) both dropped by more than five percent, although Iran denied that any negotiations were taking place.
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Lower oil prices boosted investor confidence, raising hopes that inflation could ease and reduce pressure on central banks to keep interest rates high.
Analysts said the possibility of renewed diplomacy reduced concerns about disruptions to global oil supplies.
Stock markets in Europe and the United States moved higher, while technology stocks in parts of Asia remained under pressure over concerns about the profitability of heavy investment in artificial intelligence.
Japan’s Nikkei index fell after the Japanese government and central bank intervened to support the yen, which strengthened sharply against the US dollar.
In London, the stock market was little changed as falling oil prices weighed on energy companies. Shares in pharmaceutical giant AstraZeneca also dropped following reports of a possible merger with US drugmaker Bristol Myers Squibb.
Investors are also watching upcoming US jobs data for clues about the strength of the economy and the future direction of interest rates.
Oil prices also came under pressure after Saudi Arabia, Russia and other OPEC+ members agreed to increase oil production from September.
Despite Monday’s decline, oil prices remain higher than they were before the conflict between Israel, the United States and Iran escalated earlier this year.
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