Crude Falls Below $100 As Tanker Traffic Through Hormuz Picks Up, Raising Hopes Of US-Iran Deal

Last Updated:May 25, 2026, 15:48 IST

Oil prices fall over 4 percent to two week lows as more LNG tankers transit the Strait of Hormuz and optimism grows over a US-Iran peace deal.

As more liquefied natural gas tankers passed through the Strait of Hormuz and optimism increases on the US and Iran moving closer to signing a peace deal, the oil prices have fallen more than 4% to two-week lows on Monday.

According to Reuters, brent crude futures were down $4.44, or 4.3%, to $99.10 a barrel ​at 0822 GMT, while US West Texas Intermediate futures were at $92.24 a barrel, down $4.36, or 4.5%. Both ​contracts touched their lowest since May 7 earlier in the session.

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This comes two days after US President Donald Trump announced that a peace agreement with Iran has been “largely negotiated". However, he later said that Washington will not rush into finalising a peace agreement with Iran.

Reuters have quoted analysts expecting a return to normal oil flows through the strait will take months, while damaged oil and gas facilities are repaired.

“We continue to believe that the key factors for the oil ​market to watch should be ​the physical oil flows ⁠and so far, flows through the Strait remain restricted," UBS analyst Giovanni Staunovo said.

The blockade began in April 2026 and has heavily restricted Iranian commercial and military shipping around key ports linked to the strait. “Full force and effect" would continue until the deal was “reached, certified, and signed", Trump said.

Meanwhile, Iranian President Masoud Pezeshkian said the country was prepared to reassure the world that it was not seeking nuclear weapons. However, he added that Iran would not compromise on its “honour and dignity".

Axios quoted US officials who said deal negotiators were still working through several disputed points and the agreement could take days to finalise.  A senior Trump administration official said no agreement was expected to be signed immediately because Iran’s decision-making process remained “slow and opaque".

Meanwhile, three LNG tankers heading to Pakistan, China and India passed through the Strait of Hormuz. Besides, a supertanker with Iraqi crude oil finally headed to China after being stranded for nearly three months.

The Strait of Hormuz remains one of the world’s most important energy routes. Before the conflict began, nearly one-fifth of global oil and liquefied natural gas shipments passed through the waterway.

News world Crude Falls Below $100 As Tanker Traffic Through Hormuz Picks Up, Raising Hopes Of US-Iran Deal

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