Brent Falls to below $99

Brent crude futures dropped about 5% toward $98 per barrel on Monday, extending last week’s decline as the US and Iran moved closer to a deal. Reports indicated that the proposed deal could lead to the reopening of the Strait of Hormuz, an end to hostilities, the release of some frozen Iranian assets, and additional talks focused on curbing Tehran’s nuclear program. Still, President Donald Trump stated that Washington would keep its blockade of the Strait of Hormuz in place until a formal agreement is reached, adding that he would not “rush” into a deal. A full reopening of Hormuz would provide significant relief for major Asian economies and could push oil prices substantially lower, considering the waterway carries roughly one-fifth of global oil and LNG shipments. The Iran conflict and the dual blockade of Hormuz have severely disrupted global energy markets, forcing Middle Eastern producers to halt millions of barrels per day in crude output.

Oil fell at the start of the week as the US and Iran moved closer to a deal. According to MS Now, the proposed deal would reopen the Strait of Hormuz, bring an end to the hostilities, unfreeze some Iranian assets, and pave the way for further negotiations aimed at limiting Tehran’s nuclear program. Still, President Trump said Washington would maintain its blockade of the Strait of Hormuz until an agreement is finalized and he wouldn’t “rush” into a deal. Brent fell by 5% to below $99 a barrel while crude oil was down to $92.

Brent crude futures were around $103 a barrel on Friday, after rising to as high as $106 early in the session, as renewed hopes emerged that the US and Iran could reach a diplomatic agreement. US Secretary of State Marco Rubio said there had been “slight progress” in mediated talks with Iran. Tehran is currently reviewing the latest US proposal delivered through Pakistan, although no timeline has been provided for an official response. Despite the renewed optimism, uncertainty persists over whether the conflict can be resolved and whether the Strait of Hormuz can fully reopen, leaving investors highly sensitive to mixed signals from both sides. Even so, Brent futures remain down more than 6% for the week, as markets continue to price in the possibility that the opposing parties may ultimately reach an agreement.