Brent and WTI fall as markets react to easing tensions and possible reopening of the Strait of Hormuz.
Image The Economic Time
Global oil prices fell to their lowest level in two weeks on Monday as hopes grew for progress in peace talks between the United States and Iran.
Brent crude dropped sharply, while West Texas Intermediate also recorded a significant decline as markets reacted to expectations of easing tensions in the Middle East.
The decline came after US President Donald Trump said Washington and Iran had “largely negotiated” a framework agreement that could reopen the Strait of Hormuz.
The Strait of Hormuz is a key global energy route that handles a large share of the world’s oil and liquefied natural gas shipments. Restrictions in the area have recently disrupted supply and driven price volatility.
Despite the optimism, both sides remain divided on several key issues. Trump also said the US would not rush into any final agreement with Iran.
Analysts say the market is responding to early signs of progress, but caution that major risks remain and a full agreement could take months.
Experts also warn that even if a deal is reached, it may take time for oil flows and energy infrastructure in the region to return to normal levels.
