Oil Falls as a US-Iran Framework Nears, Promising to Reopen Hormuz

The largest market move of the past 24 hours came from the oil market, where the prospect of a United States and Iran agreement to reopen the Strait of Hormuz pulled crude lower. Brent traded near $98.76 a barrel, roughly 4.6 percent below Friday's close, as traders reduced part of the risk premium added to energy prices since the conflict closed the strait.

The framework under discussion, described as a "Declaration of Principles," would set a 60-day ceasefire. During that period the strait would reopen with no tolls, Iran would clear the mines it laid, and Washington would lift its blockade and issue waivers allowing Iran to sell oil freely, analysts told Al Jazeera. United States President Donald Trump's stated condition is "relief for performance," meaning sanctions ease only after Tehran makes verifiable concessions, and he has toughened the draft terms on uranium enrichment.

Iran's lead negotiator objected, saying there will be no agreement until Iranian rights are secured, a sign the parties remain apart on the sequence of steps and on the future of enrichment. The talks continue even as Israel expands ground operations in Lebanon, which adds a second source of regional risk.

For investors focused on monetary stability, the move is a reminder that much of the recent commodity premium reflected policy and conflict risk rather than physical scarcity. Spot gold declined to about $4,535 an ounce as demand for it as a safe asset weakened, showing how quickly a single diplomatic development can change prices for both energy and metals.