By Ronnie Harui and Kimberley Kao
Oil prices dropped in early afternoon Asian trading Monday, after President Trump said new U.S.-Iran talks would begin, easing concerns regarding supply disruptions in the Middle East.
Trump told reporters Sunday that the U.S. would engage in talks with Iran starting Monday afternoon. Trump said that he had been prepared to launch the biggest military attack since World War II but had been talked down by U.S. allies.
There were initial signs of a diplomatic opening Sunday. Iranian Foreign Minister Abbas Araghchi said discussions with Oman about a mechanism for ships to transit the Strait of Hormuz was "nearing completion and in their final stages," according to Iranian state media. The strait is a critical waterway through which one-fifth of the world's oil is transported.
The "dominant story" for Asia is the sharp decline in Brent oil prices, Commerzbank Research analysts said in a note.
