Fresh hopes of a diplomatic breakthrough between the United States and Iran helped calm fears in global oil markets after two Chinese oil tankers safely exited the Strait of Hormuz carrying nearly 4 million barrels of crude oil. The development comes as President Donald Trump and Vice President JD Vance signaled progress in ongoing negotiations with Tehran.
The Strait of Hormuz remains one of the world’s most critical shipping routes for energy supplies. The conflict between the US, Israel, and Iran over the past three months severely disrupted oil shipments, damaged regional infrastructure, and raised fears of a wider Middle East crisis.
Speaking at the White House, Trump claimed that Iranian leaders were “begging for a deal” and suggested the war could end very soon if negotiations continue positively. He also warned that military action could resume within days if no agreement is reached. Vice President Vance described the talks as being in a “pretty good spot,” although he admitted that negotiations remain complicated due to divisions within Iran’s leadership.
The easing tensions immediately impacted global oil prices. Brent crude oil briefly dropped to around $110 per barrel before recovering later in the day. Market analysts believe investors are closely monitoring whether Washington and Tehran can finally reach a peace agreement that would stabilize energy markets and reopen smoother trade routes.
Iran has reportedly proposed a new peace framework that includes ending regional hostilities, lifting sanctions, releasing frozen Iranian funds, and removing US military forces from areas near Iran. However, American officials have not fully accepted the proposal yet.
Despite the fragile ceasefire largely holding since April, sporadic drone attacks and regional instability continue to raise concerns. The ongoing conflict has already caused massive humanitarian and economic damage across Iran, Lebanon, Israel, and nearby Gulf nations.
