Oil prices fell sharply on Monday as uncertainty grew around a potential peace agreement between the United States and Iran. A senior US official said final approval for the deal to end ongoing hostilities could take several more days. Brent crude dropped more than five percent to about 95 dollars per barrel, though prices remain roughly 30 percent higher than before the conflict began.

US and Iranian officials issued conflicting statements about the progress of the talks. Both sides indicated that a deal could reopen the Strait of Hormuz, a vital route for global oil and gas shipments currently restricted by Iran. Analysts view the possible agreement as a political opportunity for President Donald Trump to distance himself from a long-unpopular war, though key issues such as Iran’s nuclear program may remain unresolved.

Regional tensions persist, with Israeli politicians warning the deal might fail to limit Iran’s nuclear capacity, and clashes continuing between Israel and Hezbollah in Lebanon. Meanwhile, Pakistan’s leaders, acting as mediators, visited China for talks with President Xi Jinping, underscoring Beijing’s stake as Iran’s largest oil buyer.