International oil prices plunged on the 25th as expectations grew for progress in talks between the United States and Iran.
On the day at the ICE Futures Exchange in London, England, July Brent crude futures settled at $96.14 a barrel, down 7.15% from the prior session. It was the biggest one-day decline since on the 6th.
At the New York Mercantile Exchange (NYMEX), July West Texas Intermediate (WTI) futures also closed at $90.31 a barrel, down 6.51% from the prior session. However, due to the U.S. Memorial Day holiday, transaction volume was lower than usual.
Oil prices began to fall as news broke that talks between the United States and Iran were making progress on the day.
The two countries are said to have extended the cease-fire by 60 days and are close to signing a memorandum of understanding (MOU) to reach a final agreement during this period.
Mohammad Bagher Ghalibaf, speaker of parliament and head of Iran's negotiating team, and Foreign Minister Abbas Araghchi visited Doha, Qatar, on the day and met with the Qatari prime minister. The talks reportedly discussed the Strait of Hormuz issue and the highly enriched uranium issue.
U.S. President Donald Trump wrote on his social media, Truth Social, "Talks with Iran are going smoothly," adding, "If the deal falls through again, the attacks on Iran will become even more intense."
However, even if the war ends, some expect it could take months for supplies to normalize, as time will be needed to repair damaged oil and gas facilities.
Jun Go, a commodities analyst at Sparta, said, "The fundamental supply shortfall of 10 million to 11 million barrels per day will not be resolved immediately," adding, "Until production by Middle Eastern oil producers normalizes, the market will continue to draw down inventories, and this situation could last for months."