Oil prices fell sharply by more than 5 USD to a two-week low in the first trading session of the week as the market increased expectations that the US and Iran are getting closer to a peace agreement, although the two sides still disagree on many important issues such as blockading the Strait of Hormuz.
As of 4:52 PM Vietnam time, Brent oil price decreased by 5.32 USD, equivalent to 5.31%, to 94.88 USD/barrel. Meanwhile, US WTI oil decreased by 5.22 USD, equivalent to 5.4%, to 91.38 USD/barrel.
Both contracts at one point fell to the lowest level since May 7 in this trading session.
On Saturday, US President Donald Trump said Washington and Tehran had "basically reached a consensus" on a peace agreement that could lead to the reopening of the Strait of Hormuz - a shipping line that used to transport about 20% of global liquefied natural oil and gas before the conflict broke out.
Mr. Saul Kavonic - Analyst at MST Marquee said that although there are still many risks and obstacles related to the peace agreement as well as the situation in the Strait of Hormuz, the market has now begun to see the "light at the end of the tunnel", thereby helping oil prices cool down in the short term.
However, the two sides still have disagreements on many unresolved issues. Mr. Trump also said on Sunday that he had asked US representatives not to rush to reach an agreement.
Mr. Warren Patterson – Head of Commodity Strategy at ING said that the market has repeatedly witnessed negotiations approaching agreements and then breaking down, so investors will be more cautious and avoid overreacting.
Analysts also believe that even if a peace agreement is reached, the process of fully restoring oil flow through the Strait of Hormuz may take months because damaged oil and gas facilities need time to repair.
Ms. Priyanka Sachdeva - an analyst at Phillip Nova - said that the longer the crisis lasts, the more the market questions whether world leaders really want to quickly end the supply disruption.
Meanwhile, US energy companies continue to increase the number of oil and gas rigs for the fifth consecutive week as domestic energy prices remain high.
According to data from Baker Hughes, the number of drilling rigs increased by 7 rigs to 558 rigs in the week ending May 22 - the highest level since June 2025.
However, the total number of drilling rigs is still about 1% lower than the same period last year.
Ms. Sachdeva said that technical indicators show that the market is trying to stabilize again after a strong sell-off last week, but market sentiment is still quite fragile.
