Oil prices fell sharply in Asian trade on Monday, with Brent breaking below $100 a barrel after U.S. officials flagged some progress towards reopening the Strait of Hormuz.
Brent oil futures for July slid 5.6% to $97.74 a barrel by 01:09 ET (05:09 GMT), while West Texas Intermediate crude futures slid 6.1% to $90/71 a barrel.
Both contracts slid to their weakest levels in nearly three weeks.
Oil prices fell further on Monday after U.S. Secretary of State Marco Rubio flagged some progress towards a deal to reopen the Strait of Hormuz.
Rubio said the U.S. and Iran had a “pretty solid” framework deal on reopening Hormuz, but hinted at military action if Tehran did not accept a deal.
His comments came after U.S. President Donald Trump over the weekend said the U.S. was close to finalizing a framework deal with Iran.
Reports also showed both sides and Pakistani mediators flagging progress towards a deal. But Iranian state media contradicted Trump’s claims that a deal was nearly final.
Trump later said there was no rush to strike a deal with Iran, and that a naval blockade against the country would remain until an agreement was reached.
