Global oil prices dropped sharply on Monday, slipping below $90 per barrel after US President Donald Trump said Washington was having “good talks” with Iran. The move reflected a quick market response to signs that diplomacy could ease uncertainty around Iran.
Oil markets are highly sensitive to developments involving major producers and key geopolitical flashpoints. Any indication of progress in US-Iran discussions can change expectations around supply risks, and that appeared to weigh on prices at the start of the week.
Trump’s comments raised hopes that the two sides could move toward a diplomatic breakthrough. Even without a confirmed agreement, a more positive tone from Washington was enough to trigger a sell-off in crude, as traders reassessed the likelihood of further disruption.
The decline below $90 highlights how strongly political signals can influence energy markets. For now, investors are watching the US-Iran track closely, with oil prices likely to remain reactive to any fresh signs of progress or renewed tension.
