On Sunday, crude oil prices fell significantly, with West Texas Intermediate futures decreasing about 5% to $91.65 per barrel and Brent futures also dropping around 5% to $98.30 per barrel. This decline was triggered by President Trump's statement that talks with Iran are advancing, although he emphasized that the U.S. would not rush into a deal.
Trump indicated that an agreement concerning the Strait of Hormuz, which is vital for global oil supply, was largely negotiated and would be announced soon. However, he has previously suggested that tensions with Iran were close to resolution, only for conflicts to escalate again, leading to higher oil prices.
The recent volatility in oil prices follows a week where U.S. crude lost over 8% and Brent fell more than 5%, after Trump postponed airstrikes against Iran to allow for further negotiations. Since the U.S. and Israel's military actions against Iran on February 28, oil prices have surged more than 30%.
Iran's blockade of the Strait of Hormuz has severely restricted oil exports from the Middle East, resulting in the largest supply disruption in history. The U.S. has responded with its own blockade of Iranian ports and vessels, which Trump confirmed would remain in place until a formal agreement is reached