WASHINGTON \u2014 World oil prices fell below $100 per barrel on Monday\n(25 May 2026), with stock markets rising amid hopes that the United\nStates (US) and Iran are moving closer to a peace deal. The global\nbenchmark Brent crude futures contract dropped 6% to $97.43 per\nbarrel.<\/p>\n
According to The Guardian, this marks the lowest level in two weeks\nas hopes grow for a deal to end the nearly three-month conflict between\nthe US, Israel, and Iran.<\/p>\n
However, despite the framework of an agreement being negotiated, the\nUS and Iran remain at odds over key issues such as Iran\u2019s blockade of\nthe Strait of Hormuz.<\/p>\n
An Iranian government spokesperson warned that the deal \u201cis not\nlikely to happen soon.\u201d The de facto closure of the Strait of Hormuz\npreviously triggered a surge in energy prices after the US and Israel\nlaunched missile strikes on Tehran on 28 February.<\/p>\n
Warren Patterson, ING\u2019s chief commodities strategist, told Reuters\nthat markets are likely to remain cautious in responding to the\nnegotiations.<\/p>\n
\u201cWe have been here before, but talks ultimately failed. Therefore,\nmarkets are likely to be more cautious about overreacting,\u201d Patterson\nsaid.<\/p>\n
Even if the Strait of Hormuz reopens, analysts say it could take\nmonths for oil flows to normalise, as damaged energy infrastructure in\nQatar and other regions still needs repair.<\/p>\n
Last week, Barclays maintained its forecast for this year\u2019s average\nBrent crude price at $100 per barrel, though the bank noted there\nremains a risk of higher prices.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/world-oil-prices-fall-amid-us-iran-peace-hopes-1780137052", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }