Oil hits two-week low on US-Iran peace deal optimism
Brent crude fell 4% as the US and Iran moved closer to a deal. Reopening the Strait of Hormuz is a priority. Markets remain cautious about the final outcome.
Brent Crude Oil prices fell 4.3% to $99.10 a barrel as the United States and Iran moved closer to a peace deal. The decline pushed crude to its lowest level since May 7. Investors are weighing the potential for reopened shipping lanes against ongoing disputes over blockades in the Strait of Hormuz.
### Diplomatic Progress Pressures Crude Prices Negotiations between Washington and Tehran have produced a preliminary understanding to reopen the Strait of Hormuz. This waterway previously carried 20% of global oil and Natural Gas shipments before the conflict began. Despite the progress, U.S. President Donald Trump said on Sunday that he instructed representatives not to rush the final agreement.
