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Oil prices fall as the administration gives talks with Iran space to develop

Oil prices tumbled on Monday as the United States and Iran paused their escalating strikes to make space for diplomacy. The international oil benchmark Brent closed down by 8.7% to $88.36 per barrel, while U.S. crude fell by 7.5% to $82.61 per barrel. This sharp reversal follows a week where prices soared above $100 per barrel due to conflict-driven disruptions in the Strait of Hormuz and the Red Sea. The administration announced a pause in military operations to allow for ongoing negotiations. President Trump said the U.S. is holding good talks with Iran and that there is a good chance a deal could be reached. However, analysts warn that while the pause provides optimism, it does not guarantee an immediate resumption of oil flow. Meanwhile, markets reacted positively to the news, with gold prices climbing and stocks rallying on Wall Street. The U.S. ambassador to the United Nations, Mike Waltz, noted that the president is keeping all options on the table while the Iranian regime faces internal divisions regarding the peace process.

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