CNBC
Crude oil prices declined by more than 4% on Sunday, following remarks from President Donald Trump indicating progress in talks with Iran regarding the reopening of the Strait of Hormuz.
By 6:40 p.m. ET, West Texas Intermediate (WTI) futures had fallen nearly 5%, settling at $92.05 per barrel, while the international benchmark Brent futures decreased almost 5%, reaching $98.88 per barrel.
"The negotiations are proceeding in an orderly and constructive manner, and I have informed my representatives not to rush into a deal, as time is on our side," Trump stated in a social media post on Sunday.
The President indicated on Saturday that a preliminary agreement with Iran to address the situation in Hormuz and related issues was largely finalized and would soon be announced. Trump has previously hinted at a near resolution to the conflict with Iran, only for tensions to escalate subsequently, causing oil prices to spike once more.
Since early March, Iran has enforced a de facto blockade on commercial shipping through the Strait of Hormuz in response to U.S. and Israeli airstrikes that resulted in the death of the Islamic Republic's leader, Ayatollah Ali Khamenei, along with other high-ranking officials.
This blockade has severely impacted oil exports from the Middle East, leading to the most significant oil supply disruption recorded in history.
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