Oil prices plunge 5% as US-Iran deal nears

Brent crude oil prices dropped more than 5% to $97.64 a barrel following US President Donald Trump's announcement of advancements in negotiations aimed at resolving the conflict with Iran. Meanwhile, West Texas Intermediate was priced below $92. Trump noted on social media that he would not hasten a deal that remains incomplete, emphasizing that the blockade of the Strait of Hormuz would persist until a final agreement is reached. Senior US officials indicated that the final approval process could take several days. However, significant disagreements linger, particularly regarding Iran's nuclear program. Iran's Tasnim news agency warned that the draft agreement might fall apart due to US resistance to clauses like the unfreezing of Iranian assets. The crisis began in February with US and Israeli attacks on Iran, which disrupted global energy markets and led to the shutdown of millions of barrels of crude supply daily. The Strait of Hormuz, a crucial passage for about 20% of the world's oil and LNG, remains blocked by both the US and Iran. Brent's decline on Monday marked its fourth drop in five sessions, approaching its lowest closing price in over a month. Additionally, Europe's natural gas benchmark fell by as much as 6.3%. A complete reopening of the strait would benefit energy importers in Asia, including China, Japan, and South Korea.