Oil prices marked their largest single-day drop in weeks on Monday. Prices fell approximately 6% to two-week lows. Brent crude futures declined to $97.69 a barrel. U.S. West Texas Intermediate fell to $90.85.
Optimism regarding a U.S.-Iran peace agreement triggered the sell-off. Negotiations prioritize reopening the Strait of Hormuz. This chokepoint handled nearly 20% of global oil and LNG shipments before the conflict.
President Donald Trump stated the two sides have largely negotiated an understanding. These reports fueled market hopes for a resolution. The market reaction reflects a reduced geopolitical risk premium.
Analysts remain cautious as significant hurdles and key disagreements persist. A successful deal would significantly ease global supply concerns.