Oil prices extended their sharp decline late Sunday and into Monday after U.S. President Donald Trump called off what he described as the largest U.S. military strike since World War II and announced that new negotiations with Iran would begin Monday, aimed at reopening the Strait of Hormuz.
Brent crude fell as much as 7.3 percent to $83.25 a barrel, while WTI dropped 4.74 percent to $80.66. The sell-off accelerated after OPEC+ approved a production increase of roughly 188,000 barrels per day starting in September, adding supply-side pressure to easing geopolitical risk.
The strait has been closed since late February following U.S. strikes on Iran, which drove crude above $119 in March. Talks between Iran and Oman, potentially backed by Gulf states, China, and Washington, are seen as the diplomatic track ahead. Maritime risks persist: the UKMTO reported three additional tanker attacks since Saturday.