Oil prices fell sharply on Sunday after reports suggested the United States is nearing a deal to end military conflict with Iran and reopen the Strait of Hormuz.
The potential agreement would restore access to a key waterway for global oil shipments, easing supply concerns that had driven prices higher.
Traders reacted quickly to the news, with crude futures dropping as expectations of a diplomatic resolution grew.
Despite the reported progress, U.S. President Donald Trump indicated there is no rush to finalize the deal.
The Strait of Hormuz, a critical chokepoint for oil tankers, has been a focal point of tensions between the two nations.
A reopening of the strait would likely stabilize energy markets and reduce the risk of supply disruptions.
Analysts noted that any formal agreement would need to address broader regional security concerns beyond oil shipments.
The conflicting signals between reported progress and the president’s cautious stance kept some market participants on edge.
Investors now await official confirmation from both sides to gauge the true timeline and scope of any deal.
