Oil prices fell sharply in early Asian trading on Monday after reports that a deal to reopen the Strait of Hormuz is close to completion.
Brent crude dropped more than 5 percent, falling below $100 to $98.27, while West Texas Intermediate (WTI) slid to $91.63 at the time of reporting.
Market sentiment was mixed after US President Donald Trump posted over the weekend that he had instructed his negotiators “not to rush into a deal,” while a senior US official later said progress had been made, but no agreement would be signed on Sunday.
The deal aims to reopen the Strait of Hormuz, end the war, and require Iran to scale back its enriched uranium program. An initial phase would include a 60-day ceasefire extension, restoration of maritime traffic through the Strait, and continued nuclear talks.
Iran’s Tasnim news agency reported that vessel traffic through the Strait could return to pre-war levels within 30 days if an agreement is finalized.
The framework also reportedly includes a ceasefire between Israel and Hezbollah. However, Israeli Prime Minister Benjamin Netanyahu said any final agreement with Iran must eliminate the nuclear threat.
Iranian Foreign Ministry spokesperson Esmail Baghaei said the memorandum is in its final stages, but nuclear details are still not being finalized at this stage.
While the deal could ease pressure on global energy markets, uncertainty remains over how quickly oil flows and damaged infrastructure can fully recover, and whether long-term maritime security in the Strait will be guaranteed.
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Incompetent as usual. Kindly watch Patrick boyle , you might learn something.
Oil prices in Brent crude and West Texas are not Asian. They are just American.
The insurance fee, freight charges, premiums, crew fee and the reopening of the oil wells and resumption of oil is the core issue. Those wells need to be reopened first and the process of extraction needs to be refund which costs alot .
The oil price is just 1 issue there are 10 more.