International Oil Prices Plunge Over 6% Amid US-Iran Diplomatic Hopes

International oil prices experienced a significant drop of over 6% on Monday, driven by a cautious optimism surrounding potential renewed negotiations between the United States and Iran. The market's sentiment shifted following the US announcement of a pause in further military actions against Iran after two weeks of strikes.

Brent crude futures fell as much as 6.39% to $85.82 a barrel in early Asian trading, while West Texas Intermediate (WTI) crude also opened lower, dropping 6.85% to $83.19. By 8:11 AM Taipei time, Brent was trading at $87.37 and WTI at $84.47.

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Information exchange between Iran and the United States is still ongoing, and the mediators are continuing their relevant work.

The easing of tensions in the Middle East has fueled hopes for a diplomatic resolution to the conflict. Iran's Foreign Ministry spokesperson, Bahaei, confirmed that communication channels between Iran and the US remain open, with mediators actively engaged in the process. However, Iran also voiced criticism, stating that the US had seriously violated multiple terms of a brief, 14-clause memorandum of understanding, thus betraying diplomatic efforts for the third time.

Following 13 days of military operations against Iran, the US halted further strikes starting Friday night. This pause has led to speculation about President Trump's next move. The Iranian military has indicated that Tehran has temporarily suspended its retaliatory actions, contributing to the market's expectation of de-escalation.

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The US's actions have publicly and seriously violated multiple contents of this memorandum of understanding, causing diplomatic efforts to be 'betrayed for the third time'.