Crude oil prices dropped below $100 in the morning session of Asian trading hours on Monday after the U.S. President Donald Trump, on Saturday, signalled a positive progression on the deal with Iran to end the war and reopen the Strait of Hormuz.
As of 8:53 local time in Bangkok on Monday, the international benchmark Brent crude fell 3.86% to $99.54 a barrel, while the West Texas Intermediate slipped 4.28% to $92.47 a barrel.
Trump stated that the framework for an agreement with Iran, which would include reopening the Strait of Hormuz, has been “largely negotiated”, following discussions with Israel and several regional partners.
While Trump indicated that only final details remained to be settled, he did not elaborate on the specific terms of the possible deal. The president mentioned separate discussions with leaders from Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Turkey, Egypt, Jordan, Bahrain, and Israel, calling the document under negotiation a “Memorandum of Understanding pertaining to peace.” However, formal approval by the United States, Iran, and the participating countries is still required before an announcement can be made.
A regional official familiar with the mediation process, speaking anonymously, told reporters that the U.S. and Iran had made significant headway toward a wartime settlement, though last-minute obstacles could still arise.
As per Reuters, the agreement in progress would formally declare an end to the war, establish a negotiation period on Iran’s nuclear program, reopen the Strait of Hormuz, and terminate the U.S. blockade on Iranian ports.
In Tehran, officials commented that the deal represents a “framework agreement” for further talks, with discussions about the Strait of Hormuz ongoing. They emphasized that issues related to Iran’s nuclear program are expected to be addressed in subsequent negotiations.
