Crude oil prices have dipped sharply after US President Donald Trump indicated that a peace deal with Iran is yet to be finalised, sending mixed signals to the global community. Brent crude, the primary benchmark for global oil prices, fell nearly 5 per cent on Sunday.
Brent futures for July delivery came under pressure, falling below $98.47 a barrel as of 01:05 GMT.
The price is down about 9 per cent from a month ago but still up by more than a third compared with levels before the start of the war.
Meanwhile, Asian markets have surged, with Japan’s Nikkei 225 rising more than 3 per cent in morning trade and hitting an all-time high after closing at a record peak on Friday.
In a post on his Truth Social platform, Trump said negotiations with Tehran were heading in an “orderly and positive direction” but added that he had instructed officials “not to rush into a deal”.
“Both sides must take their time and get it right. There can be no mistakes!” the post further read.
“Fundamentally, there is no change to the underlying picture, where 10-11 million barrels per day of crude oil continue to be shut-in for every day the Strait of Hormuz remains shut,” June Goh, a senior oil market analyst, said on Monday.
“However, markets are expecting a gush of 100 million barrels of crude oil from the stranded ships to flow out once the deal is in place.”
Neither Iran nor the US is likely to bend on their core demands, including issues related to nuclear enrichment and the closure of the Strait of Hormuz.
Also read: Crude oil prices drop 8.5 pc amid positive US-Iran developments
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