economy
Oil prices fall 5% after Trump says Iran talks proceeding in a 'constructive manner'
Trump had said an agreement with Iran to open the Strait of Hormuz, among other issues, was largely negotiated and would be announced soon.
TL;DR
- Crude oil prices decreased significantly (over 4%) following President Trump's remarks on Iran negotiations.
- West Texas Intermediate futures fell approximately 5% to $91.65 per barrel.
- International benchmark Brent futures also dropped around 5% to $98.30 per barrel.
- President Trump indicated that talks with Iran regarding the Strait of Hormuz are advancing constructively.
- He also mentioned that negotiations are not to be rushed, with time being on the U.S. side.
- The Strait of Hormuz is a critical chokepoint for global oil supply, with about 20% of global supply passing through it before the war.
- Iran had imposed a de facto blockade of shipping through Hormuz, which has been a major cause of supply disruption.
- The U.S. has maintained a blockade of Iran's ports and vessels, which will remain in effect until an agreement is reached.