WEB DESK: Global oil prices witnessed a sharp downturn on Monday, with crude prices plunging more than 5% in early Asian trading. The decline was driven by growing investor hopes of a potential agreement between Iran and the United States that could help end the ongoing conflict in the Middle East, easing supply concerns.
According to news agency reports, Brent crude futures fell by 5.1%, settling at $98.22 per barrel. Meanwhile, West Texas Intermediate (WTI) crude dropped by 5.2% to $91.57 per barrel.
The price drop came despite cautious remarks from former U.S. President Donald Trump, who characterized the chances of an immediate completion of any agreement as low. Nevertheless, markets reacted positively to the prospect of diplomatic progress between Washington and Tehran.
In a statement released on social media on Sunday, Trump confirmed that he had instructed his representatives not to rush into an agreement, signaling a deliberate approach to negotiations rather than a swift breakthrough.
Analysts note that any de-escalation in Middle East tensions typically reduces the risk premium baked into oil prices, as investors anticipate the potential return of Iranian crude to global markets and a lower likelihood of supply disruptions.
