Oil prices fell more than 4% on Sunday after President Donald Trump signaled that talks with Iran to reopen the Strait of Hormuz are progressing, although he said the United States was in no rush to reach a deal.
west texas intermediate Futures prices were down about 5% to $91.65 a barrel by 7:13 p.m. ET. international benchmark brent Futures also fell by about 5% to $98.30 per barrel.
“Negotiations have been proceeding in an orderly and constructive manner, and I have told our delegates not to rush to a deal now that time is on our side,” Trump said in a social media post Sunday.
The president said on Saturday that a deal with Iran, including on the opening of the port of Hormuz, has largely been negotiated and will be announced soon. President Trump has previously suggested that the conflict with Iran was on the verge of being resolved, only to escalate tensions and send oil prices soaring again.
U.S. crude oil fell more than 8% last week and Brent crude fell more than 5% after President Trump announced he would halt impending airstrikes on Iran to give more time to negotiations. Prices have soared more than 30% since the US and Israel attacked Iran on February 28th.
Iran has effectively blocked ships passing through Hormuz since early March, requiring them to obtain permission to pass or risk being attacked. The blockade was imposed after U.S. and Israeli airstrikes killed the Islamic Republic’s head of state, Ayatollah Khamenei, and other top leaders.
Hormuz is one of the most important checkpoints for the world oil market, and before the war, about 20% of the world’s supply went through sea lanes. The Iranian blockade has sharply reduced oil exports from the Middle East, causing the largest supply disruption in history.
The United States responded by blockading Iranian ports and ships. President Trump said Sunday that the U.S. blockade “will remain in full force and effect until an agreement is reached, certified and signed.”
