Global crude oil prices experienced a sharp decline of approximately 5% on Sunday following positive signals regarding ongoing diplomatic negotiations between the United States and Iran. West Texas Intermediate futures dropped to $91.65 per barrel, while international benchmark Brent futures fell to $98.30 per barrel, reflecting market optimism that a resolution to the current geopolitical tensions may be on the horizon.

President Donald Trump indicated that discussions concerning the reopening of the Strait of Hormuz are advancing in an orderly and constructive fashion. Despite this progress, the administration has signaled that it will not rush into a premature agreement, emphasizing that time remains a strategic advantage. The President noted that while key aspects of a potential deal have been largely negotiated, the existing U.S. blockade of Iranian ports and vessels will remain in full effect until a formal, certified agreement is finalized.

The Strait of Hormuz serves as a critical artery for the global energy sector, historically facilitating the transit of roughly 20% of the world’s oil supply. The region has faced significant volatility since late February, with a de facto blockade causing the most substantial supply disruption in modern history. While previous suggestions of a resolution have been met with renewed escalations, the current market reaction suggests that traders are closely monitoring these diplomatic developments for signs of a sustained return to stability.