Oil prices tumbled more than 6% today, falling below $80 a barrel, as President Donald Trump confirmed that US-Iran peace talks will begin Monday. The sharp reversal follows a month-long surge that had pushed crude up more than 20%.
What drove the drop
The price slide accelerated after Trump announced the diplomatic opening, saying he had canceled a major military operation amid growing deal-making between the two countries. Traders interpreted the move as a sign that supply disruptions from the region are less likely, sending benchmark crude to its lowest level in weeks.
Last month's rally
Before today, oil had been on a tear. Prices climbed more than 20% over the past four weeks on fears of a broader Middle East conflict and potential hits to production. The rally had pushed crude above $85 a barrel at its peak.
The talks are set to begin Monday. No details have been released on the agenda or who will represent each side. Markets will be watching closely for any signs of a lasting agreement that could further ease supply concerns.
