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28-05-2026
DUBAI: Oil prices have fallen sharply on hopes of a deal that could bring an end to the US-Israel war with Iran.
US Secretary of State Marco Rubio said negotiators had a “pretty solid thing on the table” and an agreement to end the conflict might be reached on Monday.
On Monday morning, global oil benchmark Brent fell 5.5% to $97.90 a barrel, and remained around $97.70 a barrel in the afternoon.
US President Donald Trump said the negotiations were “proceeding nicely” but added it would either be “a great deal for all or no deal at all”.
While Iran says progress has been made, a government spokesman added that a deal was “not imminent”.
Trump had previously said the deal would include the reopening of the key Strait of Hormuz shipping route, without giving further details.
The Strait of Hormuz, through which around a fifth of the world’s oil and liquefied natural gas (LNG) usually passes, has been effectively closed since the conflict started on 28 February.
Earlier on Monday, Rubio said the talks were “still a work in progress.”
“As I said, you know, we thought we might have some news last night,” Rubio said in the Indian capital, Delhi.
His comments came after Trump said he had instructed negotiators “not to rush into a deal”, after earlier suggesting one was close.
Speaking after Rubio’s comments, Iran’s foreign ministry spokesman, Esmail Baqai, said agreement has been reached on a “large portion of the issues under discussion” but to say that this means the signing of an agreement is imminent no-one can make such a claim,” he added.
On Saturday, Trump said that he had had a “very good call” with the leaders of Saudi Arabia, the United Arab Emirates, Qatar and others about a “Memorandum of Understanding pertaining to PEACE”.
“An agreement has been largely negotiated, subject to finalization between the United States of America, the Islamic Republic of Iran, and the various other Countries, as listed,” Trump said on social media.
“Final aspects and details of the deal are currently being discussed, and will be announced shortly.”
He also said he had had a call on Saturday with Israeli Prime Minister Benjamin Netanyahu, which had gone “very well”.
On Monday, Trump said in his discussions with the Gulf leaders and others, including the presidents of Turkey and Egypt, he pushed them to sign the Abraham Accords which are aimed at normalizing relations with Israel.
Global energy markets have seen big price swings since early March after Iran threatened to attack ships trying to use the Strait of Hormuz in retaliation for US and Israeli attacks on the country.
While crude oil prices have fallen sharply, they remain significantly higher than before the war. In the lead-up to the conflict Brent was trading at around $70 a barrel.
A ceasefire was agreed in early April, and since then Washington and Tehran have engaged in talks over a long-term peace deal.
“There is now some light at the end of the tunnel, which will bring some near term oil price relief,” Saul Kavonic, head of energy research at MST Financial “but even in the most optimistic scenario from here, oil markets will remain tight through 2027 given the time required to normalize oil flows through the Strait, repair damaged oil facilities, and rebuild global oil stocks that have seen record depletion since the war began,” he added. (Int’l News Desk)
