Crude Oil Prices Fall Below $100 As US-Iran Talks Boost Market Hopes

Global crude oil prices fell sharply on Monday, hitting their lowest levels in nearly two weeks after optimism increased over a possible breakthrough in negotiations between the United States and Iran.

The decline eased concerns over prolonged supply disruptions in West Asia and raised hopes of improved stability in global energy markets.

International benchmark Brent crude dropped nearly 6 per cent to trade below the 100-dollar-per-barrel mark, while US West Texas Intermediate (WTI) crude declined more than 6 per cent to around 90 dollars per barrel during early trading. Both benchmarks touched their weakest levels since the beginning of May.

Earlier this month, Brent crude had surged to nearly 115 dollars per barrel as escalating tensions involving the United States, Israel and Iran triggered fears of supply shortages and tighter global inventories.

Oil prices have since fallen significantly, with Brent declining almost 15 per cent between May 4 and May 25.

Market sentiment improved after US President Donald Trump indicated that Washington and Tehran had made substantial progress towards reaching a possible peace understanding aimed at reducing tensions in the region.

Trump also suggested that both countries had ‘largely negotiated’ a framework that could eventually lead to the reopening of the Strait of Hormuz, one of the world’s most strategically important shipping routes for oil and liquefied natural gas.

The Strait of Hormuz handles nearly one-fifth of global oil and LNG shipments, making it crucial for global energy markets.

Hopes of improved security and progress in US-Iran talks pushed crude prices below 100 dollars per barrel.

Uncertainty, however, remains unresolved issues, and possible disruptions in the region could trigger fresh market volatility.

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