Crude Oil Prices Drop 5% After Donald Trump Hints At Progress In Iran Talks

Oil markets saw sharp losses as crude oil prices dropped more than 4% after President Donald Trump signalled progress in talks with Iran on reopening the Strait of Hormuz, while also stressing that the United States would avoid hurrying any potential agreement.

By 7:13 p.m. ET, West Texas Intermediate futures were down about 5% at $91.65 per barrel, and international benchmark Brent futures also slipped roughly 5%, trading near $98.30 per barrel, extending a volatile period for energy traders and importing economies.

Global crude oil prices and Strait of Hormuz tensions

The latest fall in crude oil prices followed weeks of turmoil driven by conflict around Hormuz, a key waterway where about 20% of global oil supply passed before the war. Iran has enforced a de facto shipping blockade there since early March, demanding prior approval for passage.

The blockade began after U.S. and Israeli airstrikes on Feb. 28 killed Ayatollah Ali Khamenei, described as the Islamic Republic's head of state, along with other senior leaders. Since then, Middle East oil exports have dropped sharply, creating what analysts describe as the largest supply disruption on record.

Contract	Price	Move
West Texas Intermediate	$91.65 per barrel	Down about 5%
Brent	$98.30 per barrel	Down around 5%

Negotiations, crude oil prices and Trump’s public statements

Trump wrote on social media that talks with Iran are moving ahead. "The negotiations are proceeding in an orderly and constructive manner, and I have informed my representatives not to rush into a deal in that time is on our side," Trump said Sunday in a social media post.

Trump said on Saturday that a broad agreement with Iran, including steps to reopen Hormuz, was mostly settled and would be revealed soon. Trump made similar claims earlier, suggesting the conflict was close to resolution, before tensions grew again and crude oil prices jumped.

Weekly market data showed U.S. crude oil dropping more than 8% last week, while Brent slid over 5%. Those declines followed Trump’s decision to cancel imminent airstrikes on Iran, a move presented as an attempt to allow more space for further negotiations.

Blockades, crude oil prices and military responses

Iran’s restrictions in Hormuz have slashed regional exports and unsettled buyers worldwide. In retaliation, the United States has enforced its own blockade on Iran’s ports and vessels. Trump said Sunday that this U.S. action would stay in place in "full force and effect until an agreement is reached, certified, and signed."

Oil prices are still more than 30% higher than before the U.S. and Israel attacked Iran on Feb. 28, underlining the impact of disrupted supply routes. With both Iranian and U.S. blockades active, traders are watching the progress of negotiations closely for any signal on future crude oil prices.