Oil prices plunged by around 5 per cent on Monday in New York and London after Donald Trump said talks with Iran over reopening the Strait of Hormuz were progressing in a 'constructive' way, signalling possible relief for energy markets but without any concrete deal in place.
The news came after months of extreme volatility driven by the war between the US, Israel and Iran. Since late February, when US and Israeli airstrikes killed Iran's supreme leader, Ayatollah Ali Khamenei, and other senior figures, Tehran has tightened its grip on the Strait of Hormuz, while Washington has hit back with a naval blockade of Iranian ports and ships. Between them, the measures have created what analysts describe as the largest oil supply disruption on record.
