New Delhi, May 25 (IANS): Global crude oil prices tumbled to their lowest levels in two weeks on Monday as optimism over a possible breakthrough in US-Iran negotiations eased fears of prolonged supply disruptions in West Asia. International benchmark Brent crude fell 6 per cent to trade below the $100-per-barrel mark, while US West Texas Intermediate (WTI) crude declined more than 6 per cent to $90.33 in early trade – both benchmarks touching their weakest levels since early May. The slide follows a sharp rally that had pushed Brent crude to a peak of $115 per barrel earlier this month, meaning the benchmark has shed nearly 15 per cent between May 4 and May 25. The trigger for the latest decline was US President Donald Trump’s indication that Washington and Tehran had made significant progress towards a peace understanding aimed at easing regional tensions and reopening the Strait of Hormuz.
However, uncertainty around the negotiations continues to persist, with Trump acknowledging that several critical issues remain unresolved and that the US was not rushing to finalise an agreement. Analysts noted that crude prices slipping below the $100-per-barrel mark on deal expectations could emerge as a turning point for global markets if the momentum is sustained. Leading global brokerages also warned that the oil market remains vulnerable should disruptions in the Strait of Hormuz continue for an extended period – a critical concern given that the waterway previously carried around one-fifth of global oil and liquefied natural gas shipments before the conflict disrupted supplies earlier this year.