Global oil prices fell sharply in early Asian trading on Monday after US President Donald Trump announced that the United States would begin fresh negotiations with Iran, raising hopes of easing tensions in the Middle East and restoring stability to global energy markets.

Brent crude, the international benchmark, declined 4.69% to $83.81 per barrel, while West Texas Intermediate (WTI) dropped 4.67% to $80.72 per barrel, reversing part of the recent gains driven by geopolitical uncertainty.

The latest decline followed Trump's announcement that new negotiations with Iran would begin on Monday, as Washington seeks a diplomatic solution instead of pursuing major military action. The talks come after the United States postponed planned strikes against Iran in an effort to revive dialogue.

Market sentiment also improved after Iran indicated it was nearing an agreement with Oman on establishing a new route through the Strait of Hormuz, a key global shipping lane that has faced significant disruptions since the conflict escalated earlier this year.

The Strait of Hormuz is one of the world's most important energy transit routes, carrying a substantial share of global crude oil and liquefied natural gas exports. Any progress toward reopening the waterway is expected to ease supply concerns and reduce upward pressure on international oil prices.