New york: Crude oil futures prices dropped by approximately 5 percent late Sunday as trading commenced for the new week, prompted by reported progress in peace negotiations between the United States and Iran. West Texas Intermediate crude for July delivery saw a reduction of up to 5.35 U.S. dollars, equating to 5.53 percent, reaching 91.25 dollars per barrel at one stage. Similarly, Brent crude for July delivery fell by 5.57 dollars, or 5.38 percent, to a low of 97.97 dollars per barrel.
According to Azeri-Press News Agency, U.S. President Donald Trump announced on Saturday that a peace agreement with Iran has been “largely negotiated,” pending finalization involving the United States, Iran, and other Middle Eastern nations. The potential agreement includes a 60-day extension of the ceasefire, the reopening of the Strait of Hormuz, Iran’s ability to sell oil freely, and negotiations focused on limiting Iran’s nuclear program.
U.S. Secretary of State Marco Rubio expressed the United States’ readiness to enga
ge in “very serious talks” concerning Iran’s nuclear program if Iran reopens the Strait of Hormuz, as reported by The New York Times on Sunday. In tandem, the Navy of Iran’s Islamic Revolution Guard Corps (IRGC) reported that 33 vessels had traversed the Strait of Hormuz within the past 24 hours, coordinated with and permitted by its forces.
Hamad Hussain, a commodities economist at Capital Economics, cautioned that a return to pre-war energy supply levels would be challenging due to facility damages, disrupted oil production, and larger shipping hurdles through the Strait of Hormuz. Hussain projected that oil prices would remain high for some time and may only begin to decline significantly when the oil market’s supply-demand balance improves, which is expected to occur well into 2027.