Oil prices fell sharply in early Asian trading on Monday after reports that negotiations to reopen the Strait of Hormuz are nearing completion.

Brent crude dropped more than 5% to $98.27, slipping back below the $100 mark, while WTI fell to $91.63 at the time of reporting.

Sentiment was unsettled after U.S. President Donald Trump said he had told negotiators “not to rush into a deal,” though a U.S. official later confirmed that progress had been made, with no signing expected on Sunday.

The emerging agreement reportedly centers on reopening the Strait of Hormuz, de-escalating regional conflict, and curbing Iran’s enriched uranium program. An initial phase would involve a 60-day ceasefire extension, resumption of shipping through the Strait, and continued nuclear discussions.

Iran’s Tasnim news agency reported that vessel traffic could return to near pre-war levels within 30 days if the deal is finalized.

The framework is also said to include a ceasefire involving Israel and Hezbollah. Israeli Prime Minister Benjamin Netanyahu, however, stressed that any final Iran agreement must fully remove the nuclear threat.

Iranian Foreign Ministry spokesperson Esmail Baghaei said the memorandum is in its final stage, though nuclear-related details are still under discussion.

While the potential agreement has eased immediate supply fears, uncertainty remains over how quickly oil flows and damaged infrastructure can normalize, and whether long-term security in the Strait will be guaranteed.