Oil Prices Drop as Trump Signals Progress on Iran-Hormuz Talks
Crude oil prices moved sharply lower on Sunday after President Donald Trump said negotiations with Iran over reopening the Strait of Hormuz were making progress. The strait, a key shipping route for Middle East energy exports, has been effectively blocked to commercial traffic since early March, contributing to a major disruption in global oil supplies.
By early Sunday evening, West Texas Intermediate futures were down nearly 5%, trading at $92.05 per barrel at 6:40 p.m. ET. Brent crude, the international benchmark, also fell close to 5%, reaching $98.88 per barrel. The declines followed market reaction to Trump’s comments that discussions with Tehran were proceeding “in an orderly and constructive manner.”
In a social media post, Trump said he had directed U.S. representatives not to rush an agreement, stating that time was on Washington’s side. A day earlier, he said a deal with Iran to reopen Hormuz and address other issues had been largely negotiated and could be announced soon. Previous indications of progress, however, have not always led to de-escalation, and oil prices have risen again during earlier periods of renewed tension.
Iran imposed the de facto blockade after U.S. and Israeli airstrikes killed Ayatollah Ali Khamenei and other senior Iranian leaders. The move has significantly reduced oil shipments from the region and created what the report described as the largest oil supply disruption in history.
Energy markets remain focused on whether diplomatic talks can produce a durable agreement. The Strait of Hormuz is one of the world’s most important maritime chokepoints, and any sustained reopening could ease pressure on global supply. At the same time, traders are likely to remain cautious until an agreement is formally announced and shipping conditions improve. Further updates are expected as negotiations continue this week.