International oil prices plummet on expectations of renewed US-Iran negotiations…WTI down 8%

A vessel off the coast of the United Arab Emirates

International oil prices plunged on the 14th (local time) on news that the United States and Iran would resume peace talks.

On this day, the closing price of Brent crude futures for June delivery on the New York Mercantile Exchange was $94.79 per barrel, down 4.6% from the previous trading session.

On the ICE Futures Exchange, the closing price of U.S. West Texas Intermediate (WTI) crude oil futures for May delivery was $91.28, down 7.9% from the previous trading session.

News that U.S. and Iranian negotiating teams are expected to return to the negotiating table later this week put downward pressure on oil prices.

U.S. President Donald Trump also hinted at the possibility of resuming negotiations in a phone interview with the New York Post on the same day, saying regarding the peace talks with Iran, "Something could happen in the next two days, and it's more likely that we're going to go there."

Saudi Arabia is also urging the United States to lift the so-called 'reverse blockade' on the Strait of Hormuz and return to the negotiating table, the Wall Street Journal (WSJ) reported.

Previously, after the peace talks with Iran broke down, the U.S. imposed a naval blockade against Iran, centered on the Strait of Hormuz, starting at 10 AM Eastern Time on the 13th, to block Iran's crude oil exports.

Meanwhile, the International Energy Agency (IEA) announced in its April oil market report released on the same day that the Middle East war and the blockade of the Strait of Hormuz led to the worst supply disruption on record last month.

Fatih Birol, Executive Director of the IEA, stated that crude oil futures prices did not fully reflect the crisis situation.