Oil prices slide below $100 on potential US-Iran peace deal
What's the story
Oil prices have taken a major hit today, falling over 5% amid speculation of a potential deal to end the ongoing war between the United States and Iran. The conflict started in February, with a ceasefire observed since April. Mediators are working toward a settlement amid ongoing tensions. Brent crude fell over 5% to slip below $100 per barrel for the first time this month.
Ongoing negotiations
Trump says blockade on Strait of Hormuz will stay
US President Donald Trump has said that the blockade on the Strait of Hormuz will stay until a formal deal is signed and implemented. However, senior US officials have hinted that any final agreement could be reached within days. The reopening of this key maritime route could ease supply issues for many oil importers as over one-fifth of global traffic passes through it.
Price fluctuations
Brent crude fell over 5% for first time this month
The prospect of peace talks between the US and Iran has sent oil prices into a tailspin. Brent crude fell 5.1% to $98.22 per barrel, while West Texas Intermediate (WTI) dropped 5.2% to $91.57 a barrel. The market reaction comes despite Trump's comments downplaying the likelihood of an imminent deal in his social media post on Sunday evening. He said he had "informed my representatives not to rush into a deal in that time is on our side."
Ongoing conflict
US-Iran conflict and ceasefire details
The US-Iran conflict began after the US and Israel attacked Iran on February 28, prompting missile and drone strikes from the Islamic Republic across the region. A ceasefire has been in place since April 8, with mediators working toward a negotiated settlement. However, Tehran has imposed restrictions on Gulf shipping while Washington has blockaded Iranian ports.