Global oil prices fell sharply on Monday while the Japanese yen extended its gains after the United States and Japan confirmed a rare joint intervention to support the Japanese currency.
The market reaction followed U.S. President Donald Trump’s announcement that fresh negotiations with Iran were scheduled to begin later in the day, raising hopes of easing tensions in the Middle East.
Trump said the talks would cover issues surrounding the Strait of Hormuz, a critical global oil shipping route, as well as Iran’s nuclear programme.
The announcement came just days after the U.S. president warned of possible military action against Iran before later indicating that a diplomatic agreement was within reach.
Iran also disclosed that it was nearing an agreement with Oman on a new shipping route through the Strait of Hormuz, a development that further eased concerns over potential disruptions to global energy supplies.
The improving geopolitical outlook, combined with a decision by Saudi Arabia, Russia and five other OPEC+ members to increase oil production by 188,000 barrels per day from September, pushed crude oil prices lower.
At one point during trading, both Brent Crude and West Texas Intermediate (WTI) fell by more than five percent.
Currency markets also remained in focus after the U.S. and Japan confirmed a coordinated intervention to strengthen the yen—marking the first such joint action in nearly three decades.
President Trump described the intervention as a demonstration of friendship between both countries and said it would benefit not only the United States and Japan but also the global economy.
Japan’s Finance Minister Satsuki Katayama said the intervention was aimed at curbing excessive volatility in the yen and warned that authorities were prepared to take similar action again if necessary.
U.S. Treasury Secretary Scott Bessent echoed that position, stating that Washington would continue to support efforts to stabilize currency markets when required.
Financial analysts said the intervention signals growing concern among policymakers about the impact of a persistently weak yen on global financial stability.
Despite the positive developments, Asian stock markets recorded mixed performances.
South Korea’s Kospi Index fell sharply as technology giants SK hynix and Samsung Electronics retreated after posting strong gains in the previous trading session.
Japan’s Nikkei 225 also declined, while markets in Shanghai, Sydney and Singapore closed lower.
However, stock markets in Hong Kong, Taipei, Manila, Wellington and Jakarta recorded modest gains.
On Wall Street, investor sentiment remained upbeat after Amazon reported stronger-than-expected quarterly earnings, sending its shares up by more than 15 percent and reinforcing confidence in continued investment in artificial intelligence technologies.
Market Snapshot
WTI Crude: Down 5.2% to $80.26 per barrel.
Brent Crude: Down 4.7% to $83.77 per barrel.
Japanese Yen: Strengthened to 156.59 per U.S. dollar from 159.11 at the previous close.
Kospi (South Korea): Down 4.0%.
Nikkei 225 (Japan): Down 1.7%.
Hang Seng (Hong Kong): Up 0.1%.
Shanghai Composite: Down 0.7%.
The market reaction followed U.S. President Donald Trump’s announcement that fresh negotiations with Iran were scheduled to begin later in the day, raising hopes of easing tensions in the Middle East.
Trump said the talks would cover issues surrounding the Strait of Hormuz, a critical global oil shipping route, as well as Iran’s nuclear programme.
The announcement came just days after the U.S. president warned of possible military action against Iran before later indicating that a diplomatic agreement was within reach.
Iran also disclosed that it was nearing an agreement with Oman on a new shipping route through the Strait of Hormuz, a development that further eased concerns over potential disruptions to global energy supplies.
The improving geopolitical outlook, combined with a decision by Saudi Arabia, Russia and five other OPEC+ members to increase oil production by 188,000 barrels per day from September, pushed crude oil prices lower.
At one point during trading, both Brent Crude and West Texas Intermediate (WTI) fell by more than five percent.
Currency markets also remained in focus after the U.S. and Japan confirmed a coordinated intervention to strengthen the yen—marking the first such joint action in nearly three decades.
President Trump described the intervention as a demonstration of friendship between both countries and said it would benefit not only the United States and Japan but also the global economy.
Japan’s Finance Minister Satsuki Katayama said the intervention was aimed at curbing excessive volatility in the yen and warned that authorities were prepared to take similar action again if necessary.
U.S. Treasury Secretary Scott Bessent echoed that position, stating that Washington would continue to support efforts to stabilize currency markets when required.
Financial analysts said the intervention signals growing concern among policymakers about the impact of a persistently weak yen on global financial stability.
Despite the positive developments, Asian stock markets recorded mixed performances.
South Korea’s Kospi Index fell sharply as technology giants SK hynix and Samsung Electronics retreated after posting strong gains in the previous trading session.
Japan’s Nikkei 225 also declined, while markets in Shanghai, Sydney and Singapore closed lower.
However, stock markets in Hong Kong, Taipei, Manila, Wellington and Jakarta recorded modest gains.
On Wall Street, investor sentiment remained upbeat after Amazon reported stronger-than-expected quarterly earnings, sending its shares up by more than 15 percent and reinforcing confidence in continued investment in artificial intelligence technologies.
Market Snapshot
WTI Crude: Down 5.2% to $80.26 per barrel.
Brent Crude: Down 4.7% to $83.77 per barrel.
Japanese Yen: Strengthened to 156.59 per U.S. dollar from 159.11 at the previous close.
Kospi (South Korea): Down 4.0%.
Nikkei 225 (Japan): Down 1.7%.
Hang Seng (Hong Kong): Up 0.1%.
Shanghai Composite: Down 0.7%.
