By Blessing Nweke
Global oil prices dropped sharply on Monday while Asian stock markets rallied after renewed optimism over a possible peace agreement between the United States, Israel, and Iran eased fears of prolonged disruption in the Middle East.
Brent crude, the international oil benchmark, fell 5.5% to $97.90 per barrel in early Asian trading, while US West Texas Intermediate crude dropped 5.8% to $90.99. The decline came after US President Donald Trump said a deal with Tehran had been “largely negotiated,” raising expectations that tensions in the region could soon ease.
The conflict, which began on February 28, led to the effective closure of the Strait of Hormuz, one of the world’s most important energy shipping routes. Nearly 20% of global oil and liquefied natural gas supplies normally pass through the narrow waterway.
Trump previously suggested that the agreement would include reopening the strait, though he offered few details. On Sunday, however, he urged negotiators not to rush the process, warning that “both sides must take their time and get it right.”
Investor confidence improved across Asian markets. Japan’s Nikkei 225 index climbed 2.9%, surpassing the 65,000 mark for the first time, as traders anticipated improved energy supplies and reduced shipping risks.
Iranian officials acknowledged progress in negotiations but cautioned that major disagreements still remain. Foreign ministry spokesman Esmaeil Baqaei said talks with Washington had moved closer in recent days but criticized what he described as “contradictory statements” from the US.
Energy analysts say oil prices may remain elevated for months despite the recent decline, as damaged facilities and disrupted supply chains could take years to fully recover.
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