Oil Prices Slump As US-Iran Tensions Ease

(RTTNews) - Oil prices fell sharply on Monday after U.S. President Donald Trump said he was hopeful of agreeing a deal with Iran.

Trump's comments came after Iranian supreme leader Ayatollah Ali Khamenei likened the recent protests to a "coup" and warned that any U.S. attack on the Islamic Republic would trigger a regional war.

Investors were also reacting to an announcement by OPEC+ to maintain its pause on oil output increases for March.

Benchmark Brent crude futures plunged 5.2 percent to $65.69 a barrel as investors dialled back fears of a supply shock.

WTI crude futures plummeted 5.5 percent to $61.63, after having risen to a six-month high recently amid fears the United States could carry out a military strike against Iran.

Details of various diplomatic processes to manage tensions with the ?U.S. are being ?examined by Iran, ?Iranian foreign ministry spokesperson Esmaeil Baghaei said earlier today, adding that Tehran hoped for results in the coming days.

Meanwhile, eight OPEC+ member nations have agreed in principle to maintain their pause on planned oil production increases during a virtual meeting held on February 1.

The oil cartel cited seasonal demand factors and ongoing market uncertainty as the primary reasons for extending the output freeze.