Brent oil futures for July delivery declined 5.6% to $97.74 a barrel by 01:09 ET (05:09 GMT), while West Texas Intermediate (WTI) crude futures fell 6.1% to $90.71 a barrel. Both benchmarks retreated to their weakest levels in nearly three weeks.<\/p>\n
The move extended last week\u2019s losses, which were driven by growing expectations that a U.S.-Iran agreement on the Strait of Hormuz was nearing. The waterway had been a key source of support for prices after its closure during the Iran war, as it previously handled roughly 20% of global oil supplies.<\/p>\n
Oil\u2019s latest leg lower followed remarks from U.S. Secretary of State Marco Rubio, who said Washington and Tehran had a \u201cpretty solid\u201d framework deal to reopen the Strait of Hormuz. Rubio also indicated that military action was possible if Iran did not accept an agreement.<\/p>\n
His comments came after U.S. President Donald Trump stated over the weekend that the United States was close to finalizing a framework deal with Iran. Reports cited both sides, as well as Pakistani mediators, as signaling progress. However, Iranian state media contradicted Trump\u2019s assertion that a deal was nearly complete.<\/p>\n
Trump later emphasized there was no rush to reach an agreement and noted that a naval blockade against Iran would remain in place until a deal was secured. He reiterated that Iran could not be allowed to possess a nuclear weapon and posted several social media messages hinting at potential military action.<\/p>\n
Key points of contention between Washington and Tehran remain, particularly over Iran\u2019s nuclear activities and its enriched uranium holdings, which Tehran has largely refused to relinquish.<\/p>\n
Despite ongoing negotiations, reports on Monday indicated that only a few vessels were passing through the Strait of Hormuz, with traffic still at a fraction of pre-war levels. The closure of the channel has been central to recent oil market dynamics, given its prior role in global supply flows.<\/p>\n
Iran was reported to be preparing measures to charge for commercial shipping through the Strait, a move that could intensify frictions with the United States. In addition, any restoration of oil flows through Hormuz is expected to take several months, suggesting a prolonged period of constrained traffic even if a deal is reached.<\/p>\n
Why did oil prices fall on Monday?<\/strong> How much did Brent and WTI futures drop?<\/strong> What is the current status of the Strait of Hormuz?<\/strong> What are the main points of disagreement between the U.S. and Iran?<\/strong>
Oil prices declined on Monday due to signs of progress toward a U.S.-Iran framework deal to reopen the Strait of Hormuz, reducing fears of prolonged supply disruption through the key shipping channel.<\/p>\n
Brent futures for July fell 5.6% to $97.74 a barrel, while WTI futures slid 6.1% to $90.71 a barrel by 01:09 ET (05:09 GMT).<\/p>\n
Only a few vessels are currently passing through the Strait of Hormuz, and traffic remains far below pre-war levels. Full restoration of oil flows is expected to take several months.<\/p>\n
The United States and Iran remain divided over several key issues, particularly Iran\u2019s nuclear activities and its enriched uranium holdings, which Iran has largely declined to hand over.<\/p>\n