Oil prices fell sharply on Monday as traders reacted to reports that the United States and Iran have reached a deal to ease tensions in the Middle East.
The selloff reflects a market shift in sentiment, with investors rapidly repricing the geopolitical risk premium that had supported energy markets in recent weeks.
The decline in crude comes after President Trump indicated that talks with Iran would proceed on Monday, signaling a potential de-escalation of the ongoing conflict.
This development has led to a significant drop in oil prices, as traders anticipate a reduction in supply disruption risks.
In currency markets, the yen surged as speculation about potential intervention by Japanese authorities intensified.
The sudden spike in the yen's value reflects growing concerns about currency stability and the potential for coordinated action among major economies.