Oil Plunges 7% on US-Iran Dialogue Signals; Hormuz Reopening in Focus

Brent and WTI fell over 7% after signals of US-Iran negotiations, raising prospects for increased supply and reduced geopolitical risk premium. The situation is complicated by the reopening of the Strait of Hormuz and ongoing tensions in Yemen, with Trump reportedly seeking to avoid an offensive before elections. The drop reflects market pricing of a potential de-escalation, but uncertainty remains over the talks' outcome and regional stability.

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