World oil prices fell sharply on Monday amid growing optimism about a possible peace deal between the US and Iran. Markets reacted positively to signals of a potential restoration of stable shipping through the Strait of Hormuz, which is crucial for global energy supplies.

This was reported by Reuters. According to the agency, the cost of oil fell by about 6%, reaching its lowest level in two weeks.

Brent crude futures fell by $5.85, or 5.7%, to $97.69 per barrel. At the same time, US West Texas Intermediate crude lost $5.75, or 6%, to trade at $90.85 per barrel. During the trading session, both contracts fell to their lowest levels since May 7.

The impetus for this market movement was the statements of US President Donald Trump. On Saturday, he reported that Washington and Iran had “mostly agreed” on the parameters of a future peace agreement. One of the key topics of the negotiations is the restoration of the full operation of the Strait of Hormuz.

Before the conflict, about a fifth of the world’s oil and liquefied natural gas supplies passed through the Strait of Hormuz. The blocking of this route caused serious disruptions in global energy logistics and pushed energy prices up.

MST Marquee analyst Saul Kavonik noted that even despite the numerous risks surrounding the future agreement, the market received a certain signal of hope. According to him, the appearance of “light at the end of the tunnel” could provide a short-term easing of pressure on oil prices.

At the same time, a final compromise between the parties has not yet been reached. The United States and Iran remain at loggerheads over several complex issues, including shipping safety and the Strait of Hormuz. In addition, on Sunday, Donald Trump said that he had urged his representatives not to rush into a deal.

Warren Patterson, head of commodity strategy at ING, stressed that markets have repeatedly witnessed the breakdown of such negotiations. That is why investors are currently acting cautiously and are not ready to react too actively to previous statements by politicians.

Analysts also predict that even if agreements are reached, it will take several months for the full restoration of normal oil flows through the Strait of Hormuz. The reason for this is the need to repair damaged oil and gas facilities in the region.