Hormuz claim and diplomatic efforts pushed oil prices down

Oil prices saw a decline following diplomatic efforts in the Middle East and claims that Iran made concessions regarding the Strait of Hormuz. The barrel price of Brent crude dropped by over 3 percent to trade around 95 dollars, while West Texas Intermediate crude hovered near 88 dollars.

According to information reported by Bloomberg, oil continued its decline in the new week after experiencing its sharpest weekly loss since April 2020. However, reports that Iran has modified its demands have not yet been confirmed.

The decline in prices was also influenced by US President Donald Trump stating over the weekend that the possibility of a large-scale new attack on Iran is low. In an interview with CNN, Trump stated that this depends on Iran signing a strong agreement.

Jorge Leon, head of geopolitical analysis at Rystad Energy, stated that increased pressure for an agreement in the talks does not mean a solution is close, evaluating that if conflicts flare up again, the drops could be quickly reversed.