Global Oil Prices Dip as US-Iran Peace Talks Advance, Strait of Hormuz Set to Reopen

Global oil prices experienced a significant drop on Monday, falling by approximately 5%, following reports of a preliminary agreement between the United States and Iran to end regional conflicts. US President Donald Trump indicated that a deal with Tehran is "largely negotiated," with details expected soon, leading to gains in Asian stock markets. This development is anticipated to lead to the reopening of the Strait of Hormuz, a vital shipping lane for approximately one-fifth of the world's oil and natural gas. Consequently, benchmark crude prices, including Brent and WTI, reached their lowest points in months, with Brent falling to $83.75 and WTI to $80.87. The agreement also signals potential lifting of US sanctions on Iranian ports.