Oil prices fell sharply on Monday while Asian stock markets rallied amid growing optimism over a possible agreement to end the US-Israel conflict involving Iran, with negotiations reportedly advancing toward a potential deal.
US Secretary of State Marco Rubio said negotiators have “a pretty solid thing on the table,” suggesting an agreement could be reached as early as Monday. US President Donald Trump also indicated that discussions are progressing, including talks around reopening the Strait of Hormuz, a critical global energy shipping route that has been largely closed since the conflict began in February.
Brent crude dropped 5.5% to $97.90 a barrel, while US West Texas Intermediate fell 5.9% to $90.93. The Strait of Hormuz, through which around one-fifth of global oil and LNG flows, has been a major flashpoint, with expectations of reopening boosting market sentiment, particularly in energy-import-dependent economies such as Japan and South Korea.
However, uncertainty remains as officials on both sides signal that key issues are still unresolved. While some leaders have described talks as progressing, Iranian officials have warned that differing positions persist, even as diplomatic engagement continues.