Oil prices have dropped significantly, with Brent crude futures falling nearly 5% to below $100 per barrel, driven by hopes of a peace deal between the United States and Iran. The potential agreement could lead to the reopening of the Strait of Hormuz, a critical shipping route for global oil and liquefied natural gas, and the release of Iranian assets. US President Donald Trump stated there is 'no rush' to finalize the deal, maintaining that the US blockade of the Strait will continue until a formal agreement is reached. This optimism has positively impacted global markets, with Asian equities, including Japan’s Nikkei, seeing notable gains. The Strait of Hormuz is vital, accounting for around one-fifth of the world's oil transport, and its reopening could alleviate supply concerns that have recently driven prices higher. Analysts suggest that a successful agreement could reverse some of the supply disruptions caused by the ongoing conflict and blockades in the region.