Oil Prices Drop Nearly 5% as Trump Signals Possible Iran Peace Deal
The international benchmark Brent crude dropped below $90 a barrel for the first time since April 14, while US benchmark West Texas Intermediate (WTI) crude fell to around $86 a barrel.
ERBIL (Kurdistan24) – Oil prices fell by around 5 percent on Tuesday, slipping below $90 a barrel, after US President Donald Trump suggested that a peace agreement with Iran could be within reach, easing concerns over a wider conflict in the Middle East.
The international benchmark Brent crude dropped below $90 a barrel for the first time since April 14, while US benchmark West Texas Intermediate (WTI) crude fell to around $86 a barrel.
The decline came after Trump reiterated that negotiations with Iran were making progress, raising hopes that tensions in the region could ease and reduce the risk of disruptions to global energy supplies.
The sharp fall followed a volatile trading session on Monday, when oil prices surged after Iran and Israel briefly resumed military strikes despite a fragile ceasefire in the ongoing Middle East conflict. Fears that the hostilities could spread and threaten key shipping routes had pushed crude prices higher.
The Middle East accounts for a significant share of global oil production and exports, and any escalation in regional tensions often fuels concerns over supply disruptions, particularly around the strategically important Strait of Hormuz.
The Strait of Hormuz is one of the world's most critical chokepoints for oil transportation. It connects the Persian Gulf with the Gulf of Oman and the Arabian Sea, and a significant portion of the world's seaborne oil passes through this narrow waterway. Any disruption in this route can have severe implications for global oil supply and prices.