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3. Oil Prices Slide as Hopes Rise for U.S.-Iran Peace Deal

Global oil prices plunged on Monday, falling to their lowest levels in two weeks, as growing optimism surrounding a potential peace agreement between the United States and Iran eased fears of prolonged disruptions in global energy markets.

International benchmark Brent crude dropped by $5.09, or 4.9%, reaching $98.45 per barrel by 0705 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude fell $5.22, or 5.4%, to $91.38 per barrel. Both benchmarks hit their weakest levels since May 7 earlier in the trading session.

The sharp decline follows comments made on Saturday by U.S. President Donald Trump, who stated that Washington and Tehran had “largely negotiated” an understanding aimed at reopening the Strait of Hormuz — one of the world’s most strategic maritime chokepoints for energy trade.

Before the recent tensions, the Strait of Hormuz carried nearly 20% of global oil and liquefied natural gas shipments, making any disruption in the passage a major concern for international markets.

While geopolitical tensions appeared to ease, developments in the U.S. energy sector pointed toward expectations of continued strong production. The total rig count rose by seven to 558 rigs in the week ending May 22, marking the highest level since June 2025. However, the figure remains slightly below last year’s levels. 

The increase in drilling activity suggests that U.S. producers are responding to higher domestic energy prices and positioning themselves for stronger future output, even as global markets react to shifting geopolitical dynamics.

Despite the positive market reaction, negotiations between the United States and Iran remain fragile. Significant disagreements persist over several key issues, including regional security arrangements and guarantees surrounding maritime access through the Gulf.