Oil prices dropped sharply after US President Donald Trump said peace negotiations with Iran were making progress. Brent crude fell 5% to $99.29 per barrel, while US-traded oil declined more than 5.5% to $88.41.
Trump stated that discussions are happening “now” and that the parties involved are eager to reach a deal. However, Iranian officials dismissed these claims, calling them “fake news” and questioning the credibility of US diplomacy.
Esmail Baghaei, a Foreign Ministry spokesperson, told India Today that Iran cannot trust US claims while it continues to launch attacks. Ebrahim Zolfaqari of Iran’s unified armed forces mocked the US, questioning whether internal disagreements have led to negotiations “with yourself.”
Despite these disputes, the US reportedly shared a 15-point plan with Iran, according to reports from Reuters, The New York Times, and Israel’s Channel 12. The plan reportedly includes opening the Strait of Hormuz as a free maritime zone and lifting certain sanctions if Iran complies. These reports have not been independently verified.
Iran confirmed that “non-hostile vessels” can now use the Strait of Hormuz safely, provided they coordinate with Iranian authorities and comply with safety regulations. This statement followed earlier threats from Tehran targeting ships passing through the strategic route.
Meanwhile, tensions in the Middle East continue. Israel and Iran exchanged missile strikes, with the Israel Defense Forces (IDF) launching new attacks in Tehran targeting Iranian infrastructure. Israel also warned residents in southern Beirut, Lebanon, to evacuate as strikes against Hezbollah continued. The IDF reported earlier that Iran had fired missiles toward Israel.
The market reacted quickly to these developments, with oil prices reflecting the potential easing of tensions and improved maritime security in a critical global shipping corridor.
