Global oil prices experienced a significant decline on Monday, with Brent crude futures falling nearly 7% to $96.30 per barrel and US West Texas Intermediate crude dropping 6.5% to $90.88 per barrel. This downturn was spurred by reports of progress in negotiations between the United States and Iran, which could lead to a peace agreement and potentially ease supply disruptions in the Middle East. The Strait of Hormuz, a vital shipping route for oil, could see improved oil movement if the negotiations succeed. Analysts noted that while the market is reacting positively to these developments, the situation remains precarious, with previous talks having collapsed over unresolved issues. Even if an agreement is reached, significant oil supply challenges may persist due to damaged infrastructure that requires time to repair. As geopolitical risks decrease, oil prices may stabilize, but ongoing monitoring of negotiation outcomes and physical oil flows will be crucial for future price movements. Investors are advised to manage risks carefully as the market remains sensitive to political developments.