Oil prices fall as hopes rise for US-Iran peace deal

Global oil prices dropped sharply on Sunday as investors reacted to signs of possible progress in talks aimed at ending the US-Israel conflict with Iran.

Brent crude, the international benchmark for oil prices, fell about 5 percent to $98.47 a barrel. Despite the decline, prices remain more than a third higher than before the war began earlier this year.

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The market movement followed mixed comments from US President Donald Trump about negotiations with Tehran.

Writing on Truth Social, Trump said discussions were continuing in an “orderly and constructive manner”, but warned officials “not to rush into a deal”.

“Both sides must take their time and get it right. There can be no mistakes!” Trump wrote.

His remarks came after he suggested on Saturday that a peace agreement had been “largely negotiated”, including terms related to reopening the Strait of Hormuz, a vital global shipping route.

Iran has restricted shipping through the strait since the conflict escalated, disrupting a significant share of global oil trade.