Oil prices fall sharply as diplomatic progress with Iran and OPEC+ production increases weigh on the market.
West Texas Intermediate crude oil prices plunged nearly 8% to below $78.00 amid optimism over a potential US-Iran nuclear deal. President Trump announced negotiations would resume Monday, easing tensions that had threatened supply disruptions in the Strait of Hormuz.
OPEC+ agreed Sunday to raise production quotas by 188,000 barrels per day starting September, fully reversing voluntary cuts of 1.65 million barrels per day introduced in 2023. The move adds supply pressure to an already fragile market.
Traders remain cautious, awaiting further developments in Middle East talks before committing to aggressive positions. The combination of diplomatic progress and increased output has driven the sharp decline in prices.