CALGARY: Oil prices fell nearly seven per cent on Monday as optimism grew that the United States and Iran were moving closer to a peace deal that would reopen the Strait of Hormuz, even though Washington and Tehran played down hopes for an imminent breakthrough.

Brent crude futures were down $7.24, or almost 7pc, at $96.30 a barrel at 2:29pm ET (1843 GMT) and US West Texas Intermediate futures were down $6.30, or 6.5pc, at $90.88.

Trading volumes were light due to the US Memorial Day holiday. Iran’s top negotiator and its foreign minister were in Doha for talks with Qatar’s prime minister on a potential deal with the US to end the three-month-old war, an official briefed on the visit said on Monday. Both sides said they have made progress on a memorandum of understanding that would halt the war and give negotiators 60 days to reach a final deal.

“Even though it’s not done, there seems to be some hope that we will start to get some oil moving through Hormuz,” said Phil Flynn, senior analyst with Price Futures Group.

Published in Dawn, May 26th, 2026