Oil prices fell sharply in early Asian trade on Monday, with Brent breaking below $100 a barrel amid growing hopes for a U.S.-Iran peace deal.
Brent oil futures for July slid over 5% to $98.12 a barrel, also hitting their lowest level in nearly three weeks. West Texas Intermediate crude futures slid 5.2% to $91.31 a barrel.
U.S. President Donald Trump claimed over the weekend that a memorandum of understanding on a peace deal with Iran was “largely negotiated,” with the deal aimed at reopening the Strait of Hormuz.
Reports showed both sides and Pakistani mediators flagging progress towards a deal. But Iranian state media contradicted Trump’s claims that a deal was nearly final.
Trump later said there was no rush to strike a deal with Iran, and that a naval blockade against the country would remain until an agreement was reached.
Washington and Tehran remained at odds over several key issues, most notably Iran’s nuclear activities. Tehran has largely rejected U.S. demands to hand over its enriched uranium holdings.
Crude prices were nursing deep losses from last week, after Trump signaled some progress towards a deal.
But flows through the Strait of Hormuz remained at a fraction of pre-war levels, keeping global oil markets largely constrained and providing a floor for prices.
source https://www.investing.com/news/commodities-news/oil-slides-5-with-brent-below-100barrel-on-usiran-peace-hopes-4708246
