Oil Prices Fall Nearly 7 Percent as U.S.-Iran Peace Talks Advance

Oil prices fell nearly 7 percent on Monday as optimism grew that the United States and Iran were moving closer to a peace deal that would reopen the Strait of Hormuz. 30 a barrel. 88. S. Memorial Day holiday.

Iran's top negotiator and its foreign minister met Qatar's prime minister in Doha to discuss a potential deal with the United States to end the three-month-old war, an official briefed on the visit said Monday. Both sides said they have made progress on a memorandum of understanding that would halt the war and give negotiators 60 days to reach a final deal. S.

President Donald Trump posted on Truth Social that talks with Iran were going "nicely," but warned of fresh attacks if they failed. Iran's foreign ministry said on Monday that Iran was negotiating an end to the war and was not currently discussing nuclear issues.

Phil Flynn, senior analyst with Price Futures Group, said even though a deal is not complete, there seems to be hope that oil will start moving through the Strait of Hormuz. Rory Johnston, founder of the Commodity Context newsletter, noted that talks have collapsed on details multiple times in recent months and the strait remains closed.

Ship-tracking data showed three liquefied natural gas tankers passed through the strait in recent days heading to Pakistan, China and India, as well as a supertanker with Iraqi crude for China after being stranded for nearly three months. Analysts expect a return to normal oil flows will take months even if a deal is reached, while damaged facilities are repaired.