Oil Drops 5% as Trump Calls Iran Nuclear Talks ‘Constructive’
CNBC reported Sunday that Iran talks oil prices took a sharp hit, with crude benchmarks shedding roughly 5% after President Donald Trump signaled diplomatic progress with Tehran over the Strait of Hormuz.
West Texas Intermediate futures dropped approximately 5% to around $91.65 per barrel. International benchmark Brent crude fell a similar margin to near $98.30. Both moves came as traders recalibrated the risk premium that has dominated energy markets since late February.
Trump Urges Patience Over a Quick Agreement
In a Sunday social media post, Trump described negotiations as proceeding in an “orderly and constructive manner.” He also told his negotiating team not to rush, adding that time favored the American side. The day prior, Trump had suggested a deal covering Hormuz access and related matters was nearly finalized and would be revealed shortly.
The cautious framing tempered earlier optimism. Markets responded immediately, unwinding some of the war-premium baked into crude prices over recent months.
Background: A Blockade That Reshaped Global Energy
The current crisis traces back to February 28, when US and Israeli forces struck Iran in a coordinated operation that killed Supreme Leader Ayatollah Ali Khamenei and other senior officials. Tehran responded weeks later by imposing a de facto blockade on Strait of Hormuz shipping, requiring vessels to seek Iranian clearance or face attack.
The Strait of Hormuz is among the world’s most critical energy chokepoints. Before the conflict, approximately one-fifth of global oil supply transited the waterway daily. Iran’s closure triggered what analysts describe as the largest supply disruption in modern history, sending crude prices surging more than 30% since the strikes began.
The United States retaliated with its own naval blockade of Iranian ports and vessels. Trump confirmed Sunday that the American blockade would remain fully active until any eventual agreement is formally certified and signed.
Markets Remain Sensitive to Diplomatic Signals
This is not the first time Trump’s statements have moved crude sharply. Last week, WTI shed more than 8% and Brent lost over 5% after Trump said he had called off imminent airstrikes to allow negotiations more time. Each subsequent escalation reversed those declines quickly.
Traders appear increasingly sensitive to every diplomatic signal, given the scale of the supply shock still affecting global markets. Whether Sunday’s positive tone holds, or gives way to fresh escalation, will likely determine crude’s direction heading into the week.
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