Crude Oil Prices Drop 7% Amid Iran Deal Talks

Crude oil prices fell 7% Monday after President Donald Trump indicated that talks with Iran to reopen the Strait of Hormuz are advancing, though he said the U.S. would not rush a deal.

International benchmark Brent futures lost about 7% to close at $96.14 per barrel. West Texas Intermediate futures shed more than 6% to $90.30 per barrel.

"The negotiations are proceeding in an orderly and constructive manner, and I have informed my representatives not to rush into a deal in that time is on our side," Trump said Sunday in a social media post.

The president said Saturday that an agreement with Iran to open Hormuz, among other issues, was largely negotiated and would be announced soon. Trump has suggested before that the conflict with Iran was on the verge of a resolution, only for tensions to escalate and oil prices to shoot higher again.

U.S. crude oil lost more than 8% last week and Brent tumbled more than 5%, after Trump said he called off imminent airstrikes against Iran to allow more time for negotiations. Prices have surged more than 30% since the U.S. and Israel attacked Iran on Feb. 28.

Iran has imposed a de facto blockade of shipping through Hormuz since early March, requiring vessels to receive its permission to pass or risk attack. The blockade was imposed after U.S. and Israeli airstrikes killed the Islamic Republic's head of state Ayatollah Ali Khamenei and other top leadership.

Hormuz is one of the most important chokepoints for the oil market in the world, with about 20% of global supply passing through the sea lane before the war. Iran's blockade has dramatically cut oil exports from the Middle East as a consequence, triggering the largest supply disruption in history.

The U.S. has imposed a blockade of Iran's ports and vessels in response. Trump said Sunday the U.S. blockade would remain in "full force and effect until an agreement is reached, certified, and signed."

– CNBC's Joseph Wilkins contributed to this report.