Oil Prices Fall Below $100 as Reports Suggest Possible De-escalation in Iran Conflict
Oil prices recorded a sharp decline in early Asian trading on Monday amid reports suggesting progress toward a possible agreement aimed at easing tensions in the Middle East and reopening key energy shipping routes.
Brent crude dropped by more than 5%, falling below the $100 mark to $98.27 per barrel, while West Texas Intermediate (WTI) declined to $91.63 at the time of reporting.
Market sentiment turned cautious after mixed signals from US officials regarding ongoing negotiations. US President Donald Trump stated that he had instructed his team not to “rush into a deal,” while other officials indicated that talks had made progress but no final agreement had been reached.
Reports suggest the proposed framework includes steps toward reopening the Strait of Hormuz, reducing regional tensions, and continuing discussions on Iran’s nuclear program. An initial phase under consideration reportedly involves a 60-day ceasefire extension and the restoration of maritime traffic through the strategic waterway.
Iranian media reports indicate that shipping activity through the Strait could gradually return to normal levels within weeks if an agreement is finalized.
The broader proposal is also said to include a ceasefire arrangement involving Israel and Hezbollah. However, Israeli officials maintain that any final agreement must fully address nuclear-related security concerns.
Iran’s Foreign Ministry said discussions are in their final stages, though key technical details remain under negotiation.
