Iran Talks to Begin Monday, Trump Says

• Brent Crude and NY Crude prices slumped over 5% following Trump's announcement of negotiations with Iran.
• Trump indicated that talks would begin Monday afternoon, with a potential deal on reopening the Strait of Hormuz being close.
• An analyst noted that while progress is being made on Hormuz, shipping remains sporadic, and global oil inventories are significantly lower than earlier in the year.
• OPEC+'s recent small output hike is deemed theoretical, as producers with spare capacity face challenges in getting barrels to market, highlighting the importance of a stable Hormuz.

President Trump announced that negotiations with Iran would commence, aiming for a deal on the Strait of Hormuz. This news triggered a significant slump in oil prices, reflecting market optimism about de-escalation and potential for increased supply, despite current sporadic shipping and low global inventories. An analyst noted that while progress is being made on Hormuz, shipping remains sporadic, and global oil inventories are significantly lower than earlier in the year.