Oil prices slide on hopes of US-Iran deal

Oil prices fell sharply Monday as hopes for a negotiated end to the US-Israel war with Iran grew, following a statement from US President Donald Trump that an agreement had been 'largely negotiated' [1]. The global benchmark Brent crude dropped 5% to $98.36, while US-traded crude fell 5.3% to $91.50 [1]. Trump said the deal would include reopening the Strait of Hormuz, a key shipping route closed since the conflict began on 28 February [1][9]. However, he later urged his team not to rush, stating, 'There can be no mistakes!' [1]. The closure of the strait has caused what the International Energy Agency called the 'largest supply disruption in the history of the global oil market' [2]. It stranded exports and caused regional oil production to drop by at least 10 million barrels per day by mid-March, forcing Brent prices above $120 per barrel earlier in the crisis [2]. The conflict, which started with US and Israeli airstrikes on Iran [9], is the latest escalation in a decades-long proxy war [8]. It followed the Twelve-Day War in June 2025, which included US airstrikes on Iranian nuclear sites [4][10]. Iran's economy, home to 10% of the world's proven oil reserves, has been under sustained pressure from sanctions and conflict [5]. Analysts note that even with a deal, oil markets will remain tight due to the time required to normalize flows and repair damaged facilities [1].