Brent Declines on Iran Deal Prospects
2026-05-24 23:28
By
Jam Kaimo Samonte
1 min. read
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.