Oil prices slide on hopes of US-Iran peace deal

Oil prices fell sharply amid growing optimism over a potential peace deal between the United States and Iran that could end the ongoing conflict involving Israel. On Monday, Brent crude dropped 5.5% to around $97.70 a barrel, reflecting market hopes that negotiations might soon conclude. US Secretary of State Marco Rubio described the talks as having a "pretty solid thing on the table," with a possible agreement expected imminently. Meanwhile, US President Donald Trump indicated the negotiations were progressing well but emphasized that any deal must be beneficial for all parties involved. The conflict, which began on February 28, has led to the effective closure of the Strait of Hormuz, a critical shipping route responsible for about 20% of the world’s oil and liquefied natural gas exports. Trump previously stated that the deal would include reopening this vital passage, although details remain scarce. Iranian officials acknowledged significant progress but cautioned that a final agreement was not yet imminent. Discussions have also involved regional players such as Saudi Arabia, the United Arab Emirates, Qatar, Turkey, and Egypt, with Trump urging them to sign the Abraham Accords to normalize relations with Israel. The geopolitical tensions have caused significant volatility in global energy markets, with crude oil prices rising sharply from around $70 a barrel before the conflict to current levels near $98. Although a ceasefire was agreed upon in early April, the situation remains fragile. The potential peace deal could stabilize energy markets and ease supply concerns, underscoring the broader economic implications of the conflict. The outcome of these negotiations will be closely watched by global markets and governments due to the strategic importance of the region and its impact on global energy security.