Oil Prices Fall on Hopes for New U.S.-Iran Talks

Global oil prices declined in Asian trading after U.S. President Donald Trump announced that new talks with Iran were expected to begin, Bernd Debusmann Jr. and James Chater reported for BBC News.

Oil prices fell as markets reacted to renewed prospects for U.S.-Iran negotiations.

Brent crude fell 4.5 percent to US$83.98 per barrel, while West Texas Intermediate (WTI) declined 4.6 percent to US$80.74 per barrel.

Energy prices have remained volatile since the conflict began on Feb. 28, as markets reacted to disruptions in shipping through the Strait of Hormuz, a key route that normally carries about 20 percent of the world's crude oil and liquefied natural gas shipments.

According to vessel-tracking firm Kpler, commercial traffic through the Strait slowed noticeably.

Between July 30 and Aug. 2, 51 vessels transited the waterway, down about 28 percent from the 71 crossings recorded during the previous four-day period.

Meanwhile, Iran's semi-official Mehr News Agency denied that Tehran had requested the United States to suspend military operations, dismissing President Trump's claims as "nothing but a new lie."