Oil Prices Plunge Below $100 on Iran Deal Optimism

AI Summary

Oil prices fell sharply below $100 due to optimism around a potential deal to reopen the Strait of Hormuz, a critical passage for global oil trade. However, US President Trump cautioned against rushing the agreement, causing some uncertainty.

Oil prices plunged in early Asian trade on Monday following reports over the weekend that a deal to reopen the Strait of Hormuz was in its final stages. At the time of writing, both oil benchmarks had fallen by more than 5%, with Brent breaking back below $100 to trade at $98.27, while WTI fell to $91.63. Optimism around a deal was tempered somewhat on Sunday when President Trump posted on social media that he had informed his representatives "not to rush into a deal". A senior U.S. administration official then added that, while progress had been…