Oil Prices Decline Amid Prospects of U.S.-Iran Peace Agreement

Oil prices experienced a significant decline on Sunday, with Brent crude futures dropping approximately 4.62% to around $98.76 per barrel, falling below the $100 mark. This downturn follows early indications of a tentative agreement between the United States and Iran aimed at resolving their ongoing conflict.

The potential deal is expected to include the reopening of the Strait of Hormuz, a critical passageway that previously facilitated about one-fifth of the world's oil supply. However, energy markets remain cautious, as experts warn that it could take several months to fully restore normal shipping operations through the strait.

In the United States, gasoline prices saw a slight decrease on Sunday, averaging approximately $4.51 per gallon. This reduction offers some relief to consumers who have faced a 51% increase in fuel costs since the onset of the conflict.

Meanwhile, S&P 500 futures indicated a modest uptick of less than 1% ahead of the resumption of trading in the United States on Tuesday. This suggests that investors are cautiously optimistic, awaiting further developments regarding the potential U.S.-Iran agreement.