Oil Prices Decline Amid Uncertainty Over US-Iran Peace Negotiations
Brent crude prices fell sharply as mixed signals from US-Iran peace talks emerged, while Japan's Nikkei 225 surged to a record high.
Brent crude, the global oil benchmark, declined by over 5% on Sunday, trading at $97.94 per barrel as of 04:00 GMT. This drop follows US President Donald Trump's comments indicating that negotiations with Tehran are proceeding in an "orderly and constructive manner," but cautioning officials "not to rush into a deal."
Japan's Nikkei 225 index responded positively, surging more than 3% in morning trading to reach an all-time high.
Market analyst June Goh noted that while approximately 10-11 million barrels per day of crude oil remain shut-in due to the Strait of Hormuz's closure, markets anticipate a release of 100 million barrels from stranded ships once an agreement is finalized.
Iran has effectively blockaded the Strait of Hormuz since late February, disrupting about one-fifth of the global oil trade. The US imposed its own blockade of Iranian ports in mid-April, further affecting commercial shipping in the region.
President Trump stated that the US blockade would remain "in full force and effect until an agreement is reached, certified, and signed."
