Oil prices plunged in early Asian trade on Monday following reports over the weekend that a deal to reopen the Strait of Hormuz was in its final stages.<\/p>\n
At the time of writing, both oil benchmarks had fallen by more than 5%, with Brent<\/a> breaking back below $100 to trade at $98.27, while WTI<\/a> fell to $91.63.<\/p>\n Optimism around a deal was tempered somewhat on Sunday when President Trump posted<\/a> on social media that he had informed his representatives “not to rush into a deal”. A senior U.S. administration official then added<\/a> that, while progress had been made, the deal would not be signed on Sunday.<\/p>\n The deal itself would aim to reopen the Strait of Hormuz, end the war, and see Iran give up its enriched uranium. The first stage of the agreement would be a 60-day extension of the ceasefire, during which time traffic would resume through the Strait, and nuclear negotiations would continue.<\/p>\n Iranian news agency Tasnim reported that the number of vessels transiting the Strait could return to pre-war levels within 30 days if an agreement is reached.<\/p>\n The deal would include<\/a> an end to the war between Israel and Hezbollah, although Israeli Prime Minister Netanyahu emphasized that “any final agreement with Iran must eliminate the nuclear danger”.<\/p>\n Spokesperson for the Iranian Ministry of Foreign Affairs Esmail Baghaei said<\/a> that while the memorandum of understanding was in its final stages, the details of the nuclear issue are not being discussed at this stage.\u00a0<\/p>\n While an agreement would provide some much-needed relief to oil markets, it remains to be seen just how quickly oil flows could return to pre-war levels and how long it will take to bring damaged oil and gas infrastructure back online. Even then, without a final agreement that includes a clear understanding of how traffic will flow through the Strait uninterrupted in the future, the geopolitical risk of another major energy crisis would remain.<\/p>\n By Josh Owens for Oilprice.com<\/p>\n More Top Reads From Oilprice.com<\/p>\n","protected":false},"excerpt":{"rendered":"Oil prices plunged in early Asian trade on Monday following reports over the weekend that a deal to…\n","protected":false},"author":2,"featured_media":692113,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[32475,90538,16800,22791,43,5897,44,250992,9891,172000,41,39,42,40,3277,16724],"class_list":["post-692112","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-brent-crude","tag-ceasefire","tag-energy-markets","tag-geopolitical-risk","tag-headlines","tag-iran","tag-news","tag-nuclear-talks","tag-oil-prices","tag-strait-of-hormuz","tag-top-news","tag-top-stories","tag-topnews","tag-topstories","tag-trump","tag-wti"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/692112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=692112"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/692112\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/692113"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=692112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=692112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=692112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}