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Trump Negotiates From Strength as Oil Markets React to Potential Iran Deal

Global energy prices drop as President Trump pushes for a lasting peace agreement and the reopening of the vital Strait of Hormuz.

Foreign PolicyPublished May 25, 2026 at 1:05 PM
A worker fills a red car with fuel with a green pump labelled petrol on 23 May, 2026 in New Delhi, India.

Global energy markets are showing signs of relief as President Donald Trump continues to leverage American strength in high-stakes negotiations with Iran. Brent crude prices fell 5.5% to $97.90 a barrel on Monday, reflecting market optimism regarding a potential deal that would finally reopen the critical Strait of Hormuz.

The waterway, a vital artery for roughly one-fifth of the world's oil and gas, has been effectively shuttered since the conflict began on February 28. President Trump, maintaining a firm stance, stated that the negotiations are 'proceeding nicely' but emphasized that he will only accept a 'great deal for all' or no deal at all.

He has explicitly instructed his negotiators not to rush the process, ensuring that any final agreement serves American interests and regional stability. While Iranian officials have acknowledged progress on a 'large portion of the issues,' they admit that a final signing is not yet imminent.

Behind the scenes, the President has been actively coordinating with key regional allies, including Saudi Arabia, the UAE, Qatar, Turkey, and Egypt, while pushing for the expansion of the Abraham Accords to further normalize relations with Israel. Despite the dip in oil prices, experts warn that the path to normalcy remains difficult.

Even with a breakthrough, the shipping industry remains cautious, and restoring pre-war supply chains will take considerable time due to the need to clear potential sea mines and repair damaged infrastructure.

Regardless of the immediate market reaction, the administration's focus remains on securing a long-term resolution that protects global energy flows from the threats posed by the Iranian regime.

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