Crude Oil Prices Plunge as US-Iran Peace Deal Optimism Strengthens

Crude oil prices started the week sharply lower, falling more than 4–5 percent on Monday as growing optimism over a potential US-Iran agreement eased concerns about supply disruptions in the Middle East.

West Texas Intermediate (WTI) crude for July delivery dropped approximately $4.30, or around 5 percent, to trade near $80.50 per barrel, while Brent crude declined about 4.5 percent to around $83 per barrel.

The selloff followed reports of progress in negotiations aimed at reopening the Strait of Hormuz and reducing tensions between Washington and Tehran. The prospect of smoother oil flows through the critical shipping corridor and the potential return of additional Iranian exports to global markets encouraged traders to reduce geopolitical risk premiums.

Market analysts said investors are increasingly focusing on the possibility of improved supply conditions, outweighing concerns over tight inventories and recent market volatility. However, energy executives cautioned that any setbacks in negotiations or delays in restoring shipping operations could quickly reverse the downward trend.

Global markets are closely watching developments in the coming days, with a formal agreement or sanctions-related announcements likely to influence the next major move in oil prices. Lower crude prices could eventually translate into reduced fuel costs for consumers worldwide.