Oil retreats to $97, U.S.-Iran negotiations show signs of breakthrough

May 25, 2026 (MLN): Crude oil prices tumbled sharply as President Donald Trump signaled that diplomatic efforts to reopen the Strait of Hormuz are making meaningful progress.

Currently, Brent crude futures are down by $5.69, or 5.50%, to $97.85 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are down by 5.66%, to $90.94 per barrel by [9:53 am] PST.

"The negotiations are proceeding in an orderly and constructive manner," President Trump wrote on social media Sunday, adding that he had instructed his negotiating team to hold firm rather than rush toward a resolution. "Time is on our side," he stated, according to CNBC.

The announcement builds on remarks the made earlier, in which President Donald Trump had revealed that the critical Strait of Hormuz will be opened as part of a sweeping Middle East peace agreement that is on the verge of formation, following intensive negotiations conducted in the Oval Office with leaders from across the region.

Last week alone, U.S. crude shed more than 8% and Brent dropped over 5% after President Trump revealed he had pulled back from authorizing imminent military strikes against Iran to give negotiations more room to breathe.

Before the conflict, roughly one-fifth of the world's oil supply passed through the narrow waterway making it one of the most critical chokepoints in the global energy system. Iran's blockade has since choked off Middle Eastern oil exports, triggering what analysts are calling the most severe supply disruption in recorded history.

Washington responded with its own maritime blockade targeting Iranian ports and vessels. President Trump confirmed Sunday that the U.S. blockade would remain fully in place until a deal is officially reached, verified, and signed.

Copyright Mettis Link News