Global oil prices tumbled on Monday as hopes grew that diplomatic talks could lead to an end to the conflict involving the United States, Israel and Iran.
According to BBC News, international benchmark Brent crude fell by 5.5 per cent to US$97.90 per barrel before settling around US$97.70 later in the day as investors reacted positively to reports of progress in negotiations.
US Secretary of State Marco Rubio said negotiators had a “pretty solid thing on the table” and suggested an agreement could be reached soon.
US President Donald Trump also indicated that talks were “proceeding nicely,” but warned that discussions could either end in “a great deal for all or no deal at all.”
Iranian officials acknowledged that progress had been made, though a government spokesman cautioned that a final agreement was “not imminent.”
The conflict has significantly impacted global energy markets, particularly due to concerns surrounding the Strait of Hormuz, a critical shipping route through which nearly one-fifth of the world’s oil and liquefied natural gas normally passes.
The waterway has effectively remained closed since tensions escalated on February 28, fueling fears of supply disruptions and higher fuel costs worldwide.
BBC News reported that President Trump had earlier suggested that any agreement could include the reopening of the Strait of Hormuz, although no specific details were provided.
Analysts say easing tensions in the Middle East could help stabilise global oil supplies and ease inflationary pressure linked to rising energy prices.