Oil prices declined as the United States and Iran moved closer to an agreement, though U.S. President Donald Trump stated that Washington would maintain the blockade of the Strait of Hormuz until a deal is finalized.

Brent crude, the global benchmark, fell as much as 5.4% to $97.97 per barrel, while West Texas Intermediate (WTI) crude dropped below $92 per barrel. Trump posted on social media that he would not rush the process. Senior U.S. officials indicated it could take several days to secure final approval.

However, it remains unclear how key disagreements—such as the fate of Iran's nuclear program—will be resolved. Iran's Tasnim News Agency reported that the draft agreement could still collapse, citing U.S. obstruction on critical provisions, including Iran's demand to unfreeze its assets.

The crisis, which began in February, has upended global energy markets, with the Strait of Hormuz facing dual blockades from Tehran and Washington.

"For weeks, much of the oil trading has been based on worst-case scenarios," said Haris Khurshid, Chief Investment Officer at Karobaar Capital LP in Chicago. "But once it becomes clear that negotiations are ongoing and the situation is not escalating further, much of the panic premium can evaporate quickly."

Monday's decline for Brent marked its fourth drop in five trading sessions, setting it on course for its lowest close in over a month. Additionally, the European benchmark natural gas price fell as much as 5.9%.

As of 7:45 a.m. Singapore time, Brent July futures were down 5.2% at $98.15 per barrel, while WTI July futures were down 5% at $91.80 per barrel.