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Oil prices plunge as US-Iran deal nears
Global oil prices tumbled early Monday amid reports that Washington and Tehran are close to ending their months-long conflict. Brent crude fell 5.5 % to $97.90 a barrel, while US-traded crude dropped 5.9 % to $90.93.
Strait of Hormuz reopening expected
US Secretary of State Marco Rubio told reporters in New Delhi that negotiators have "a pretty solid thing on the table" and an agreement could be finalised as soon as Monday. President Donald Trump had earlier said the deal would include reopening the Strait of Hormuz, the critical chokepoint that carries one-fifth of the world's oil and liquefied natural gas. The waterway has been effectively closed since hostilities began on 28 February.
Asian markets rally on energy relief
Japan's Nikkei 225 index climbed 3 % to breach 65,000 for the first time, reflecting investor optimism that energy supplies will soon resume. South Korea and Japan, both heavily dependent on Gulf oil, have been among the hardest-hit economies.
UK and US energy and financial markets were closed Monday for public holidays.
Trump urges caution despite progress
Rubio acknowledged that talks were still evolving, saying, "We thought we might have some news last night. Maybe today." His remarks followed Trump's instruction to negotiators "not to rush into a deal" after he had earlier signalled an agreement was imminent.
"We're still a work in progress."
US Secretary of State Marco Rubio, New Delhi
On Saturday, Trump announced on social media that he had spoken with leaders of Saudi Arabia, the United Arab Emirates, Qatar, and others about a "Memorandum of Understanding pertaining to PEACE." He added that an agreement had been "largely negotiated" and would be finalised shortly.
Trump also confirmed a "very good call" with Israeli Prime Minister Benjamin Netanyahu but provided no further details. He reiterated that any deal would "absolutely" prevent Iran from obtaining nuclear weapons but later cautioned on Truth Social, "Both sides must take their time and get it right. There can be no mistakes!"
Iran warns of lingering hurdles
Iranian foreign ministry spokesman Esmaeil Baqaei told state television that US and Iranian positions had converged in recent days but warned that key issues remained unresolved. He accused Washington of making "contradictory statements."
Energy markets remain volatile
Oil prices have seesawed since early March, when Iran threatened to block the Strait of Hormuz in retaliation for US and Israeli strikes. Tehran also launched attacks on Israel and US-allied Gulf states, including Saudi Arabia, Bahrain, and the United Arab Emirates.
A ceasefire was brokered in early April, and subsequent negotiations have raised hopes for a lasting settlement. Despite Monday's sharp drop, crude prices remain well above pre-war levels of around $70 a barrel.
"There is now some light at the end of the tunnel, which will bring some near-term oil price relief. But even in the most optimistic scenario, oil markets will remain tight through 2027 given the time required to normalise oil flows, repair damaged facilities, and rebuild depleted global stocks."
Saul Kavonic, head of energy research at MST Financial
