Oil prices sink amid diplomatic hopes; yen advances after US-Japan intervention
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Hong Kong: Oil prices fell significantly on Monday as renewed optimism about easing tensions in the Middle East raised prospects for a potential compromise between the United States and Iran, reducing fears about interruptions to global petroleum supplies.
Investors rose when US President Donald Trump said that new talks with Iran would begin later that day. The thought of reopening the Strait of Hormuz, a vital route for global oil supplies, sparked a sell-off in crude, with Brent and West Texas Intermediate (WTI) prices falling more than 4%.
Meanwhile, the Japanese yen rose further as the US and Japan announced a rare coordinated currency intervention to help the battered currency. The coordinated action was the first of its kind in years, helping the yen extend its gains against the US dollar.
Asian stock markets traded mixed as investors assessed the impact of reduced oil prices, currency fluctuations, and ongoing geopolitical developments, although traders remained sceptical that diplomatic attempts in the Middle East would result in a long-term solution.
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