Oil prices are declining this morning following U.S. President Donald Trump's declaration that negotiations toward a peace deal with Iran are in their 'final throes.' Trump made the comments to reporters at JFK Airport after attending the NBA Finals at Madison Square Garden, where he was met with boos from the crowd.
Trump's Remarks on Iran Negotiations
Trump stated that Iran and Israel 'were going back and forth and now they both agreed through me to stop and we're in the final throes of what will be a very, very good deal.' When asked whether the timeline would be days or weeks, he responded that it would take 'two or three days,' adding that the Strait of Hormuz would 'open up right away' once the deal is signed.
Market Reaction
Brent crude has dropped by 1% this morning, trading at $93 per barrel. Despite this decline, prices remain roughly $20 per barrel above pre-conflict levels that existed before the escalation in late February. The potential reopening of the Strait of Hormuz, a critical waterway for global oil shipments, has been a key factor in the market's response.
