Concurrently with rising speculation over Iran and the United States reaching an agreement to de-escalate tensions and reopen the Strait of Hormuz, global oil prices experienced a sharp decline.
According to a report by Reuters, the price of Brent crude fell by more than 5% on Monday, dropping to around $98 per barrel, a development markets have interpreted as a sign of growing hope for an end to the energy crisis triggered by the war and regional tensions.
In its analysis, the media outlet noted that contradictory remarks by Donald Trump regarding negotiations with the Islamic Republic have contributed to volatility in global markets. On one hand, Trump said a deal is largely finalized, while on the other, he urged negotiators not to rush into an agreement.
The news website Axios reported that analysts believe easing tensions in the Strait of Hormuz could reduce some of the pressure on the global energy market, though restoring full stability to oil markets will take time.
Some experts have also warned that even if an agreement is reached, the full reopening of shipping routes and the recovery of regional energy exports will not happen immediately.
