WTI crude futures fell roughly 5% toward $91 per barrel on Monday, extending the previous week’s losses as the US and Iran appeared to move closer to an agreement. Reports suggested that the proposed deal could include the reopening of the Strait of Hormuz, an end to hostilities, the release of some frozen Iranian assets, and further negotiations aimed at limiting Tehran’s nuclear program.
However, President Donald Trump said Washington would maintain its blockade of the Strait of Hormuz until a formal agreement is concluded, emphasizing that he would not “rush” into a deal. A full reopening of Hormuz would significantly ease pressure on major Asian economies and could drive oil prices markedly lower, given that the strait handles around one-fifth of global oil and LNG shipments. The conflict with Iran and the dual blockade of Hormuz have badly disrupted global energy markets, forcing Middle Eastern producers to shut in millions of barrels per day of crude output.
