Brent crude futures fell more than 1.7% to below $98 a barrel after reports emerged that Washington and Tehran had agreed in principle to resume negotiations.
Back
Back
Oil Prices Fall From $100 as US and Iran Agree to New Round of Talks
Oil prices retreated from over $100 a barrel after the US and Iran agreed to hold a new round of negotiations, easing fears of a prolonged energy shock stemming from the conflict that has shut down the Strait of Hormuz for weeks.
"Resuming flows through the Strait of Hormuz remains the single most important variable in easing the pressure on energy supplies, prices and the global economy," the International Energy Agency said in its monthly report, which estimated that attacks have cut supply by 10.1 million barrels per day.
Brent crude futures fell $1.70, or 1.71%, to $97.66 a barrel by 1314 GMT, while U.S. West Texas Intermediate crude fell by $2.97, or 3%, to $96.11. The move reverses a surge from the previous session after weekend talks in Pakistan collapsed, prompting the US to begin a blockade of Iranian ports.
The agreement in principle to talk, first reported by the Wall Street Journal, offers a potential diplomatic path to reopening the critical waterway, through which nearly a fifth of global oil supplies pass. However, with no date or location set for the new talks, analysts warn that failure could send prices back toward their wartime highs of nearly $120 a barrel.
High Stakes Negotiations
The diplomatic opening follows a volatile week. Talks led by US Vice President JD Vance in Islamabad broke down over the weekend, with Washington blaming Tehran’s refusal to abandon its nuclear program and Iran citing “excessive” US demands. In response, President Donald Trump ordered a naval blockade of the Strait of Hormuz, where Iran had laid naval mines and was extracting illegal "protection fees" from commercial vessels.
"I can tell you we've been called by the other side," Trump told reporters on Monday. "They'd like to make a deal very badly."
Sources familiar with the negotiations suggest the two sides have fundamentally different goals. The US is pursuing a narrow agreement focused on de-escalation and maritime security, while Iran is seeking a comprehensive deal that would end the war, lift sanctions, and release frozen assets.
Market Braces for Volatility
Analysts remain cautious, pointing to the significant volume of oil still offline. "In case talks between the adversaries fail to bear fruit, even revisiting the March highs cannot be ruled out as the decline in global oil inventories might spill into the third quarter and beyond," PVM Oil Associates analyst Tamas Varga said.
The US Navy has begun operations to clear mines from the strait, with destroyers USS Frank E. Peterson and USS Michael Murphy transiting the waterway to prove its safety. US CENTCOM commander Admiral Brad Cooper said the Navy will share routes for safe passage with civilian shipping as soon as possible, a move that could undermine Iran's leverage.
Still, the market remains on edge. Mohamed El-Erian, an adviser to Allianz, said that absent a swift resumption of negotiations, the immediate market reaction would be to push oil prices and borrowing costs higher.
This article is for informational purposes only and does not constitute investment advice.
[1] Iran Update Special Report, April 11, 2026 - Institute for the Study of War[2] Oil prices fall as supply concerns ease on hopes for US-Iran talks By Reuters - Investing.com[3] Oil prices ease on hopes of new US-Iran peace talks - BBC[4] Collapse of US-Iran talks heightens fears of prolonged energy shock - The Guardian
Features
Resources
© 2026 Finture Development Limited. All rights reserved