Oil Prices Drop to Six-Week Low Amid US-Iran Talks

Oil prices experienced a significant decline, reaching a six-week low as the United States and Iran approached a peace deal. Brent crude futures fell by 5.85% to $97.69 per barrel, while US West Texas Intermediate dropped 5.75% to $90.85 per barrel.

This decline occurred despite ongoing tensions regarding the Strait of Hormuz, a critical passage for global oil shipments. US President Donald Trump indicated that negotiations were progressing but cautioned against rushing the deal, as several difficult issues remained unresolved.

Analysts, including Warren Patterson, head of commodity strategy at ING, expressed that the market would likely react cautiously to the developments. The expectation is that normal oil flow through the Strait could resume within a month, although damage to oil and gas facilities in Nigeria continues to hinder production.

This marks the fifth consecutive week of rising local energy prices in the US, with the situation reflecting broader market dynamics.