Prospect of deal with Iran pushes oil prices down

Oil prices fell to their lowest level in three weeks after US President Donald Trump announced over the weekend that new attacks on Iran had been halted and that an agreement on the "outlines" of a deal had been reached. President Trump's statements raised hopes among investors that the transit route in the Strait of Hormuz could be reopened. The price of Brent crude fell by nearly 6 percent on Monday, dropping below 83 dollars.

Oil prices have followed a volatile course in recent weeks. While rising tensions in the war waged by the US and Israel against Iran drove prices up, promising statements regarding peace talks led to a decline in prices.

Oil prices had risen by more than 20 percent last month after the resumption of clashes between the US and Iran and attacks on some tankers around Oman increased security concerns.

US President Trump claimed in a social media post over the weekend that allies in the Middle East had reached an agreement on the "outlines" of a deal that would end the war, which has been ongoing for five months. Trump stated that the emerging deal would include the reopening of the Strait of Hormuz and address US concerns regarding Iran's nuclear program.

Iran announced on Monday that there were no ongoing talks with the US and that no meetings were planned. This situation created a contradiction with the US's stated reason for halting attacks on Iran.

During the clashes, Iran carried out attacks on ships attempting to pass through the Strait of Hormuz without its permission, while the US began re-imposing a blockade on ships linked to Iran in the Strait of Hormuz.

Before the war in Iran largely halted maritime traffic, approximately one-fifth of the world's oil and natural gas passed through the Strait of Hormuz.

EXPECTATION OF A REDUCTION IN FUEL PRICES

Following the drop in oil prices, expectations for a reduction in fuel prices have emerged.