Oil prices fall almost 5% on expectations of a deal between the US and Iran

Oil prices hit two-week lows this Sunday (24), with Brent crude futures falling nearly 5% to $98.83 a barrel, while US West Texas Intermediate crude was trading at $92.03 a barrel, also down more than 4%.

The drop in oil prices comes as the US and Iran negotiate a deal that would include reopening the Strait of Hormuz, which has remained effectively closed to the flow of oil since the start of the war on February 28. About 20% of all oil supplies pass through the strait.

The rise in gasoline prices drew attention during the Memorial Day holiday, which takes place on May 25 in the USA, a busy period for travel.

This holiday was the most expensive in four years, according to AAA (American Automobile Association), which noted that high gasoline prices will remain throughout the U.S. summer.

The national average for a gallon of gasoline on Sunday was $4.51 - an increase of about 51% since the start of the war. JPMorgan analysts expect oil prices to average $97 per barrel by the end of the year if the strait reopens in early June.

Source: CNN