Oil Prices Plunge Amid Iran-US Peace Deal Hopes

Oil prices dropped nearly 7% due to optimism over potential peace talks between the U.S. and Iran, which could reopen the Strait of Hormuz. While talks showed progress, there are concerns about lasting details. Analysts caution that a return to normal oil flows could be delayed even if a deal is reached.

Oil prices have witnessed a significant decline, dropping nearly 7% amid growing optimism about a possible peace agreement between the United States and Iran. The deal would potentially reopen the critical Strait of Hormuz, easing oil flow concerns.

Despite this positivity, officials from Washington and Tehran have downplayed the likelihood of an imminent resolution. Brent crude prices decreased by nearly 7% to $96.30 per barrel, while U.S. oil futures fell 6.5% to $90.88, partly due to reduced trading volumes on Memorial Day.

Negotiations are reportedly progressing with a 60-day window to finalize a deal; however, experts warn it may take months for normal oil flows to resume. Meanwhile, U.S. President Donald Trump's remarks highlight continued tensions and the importance of broader diplomatic engagement in the region.