The US and Iran may hold a new round of negotiations in Pakistan, causing a drop in WTI crude oil prices.

There are signs that Iran will hold talks with the United States in Islamabad before the ceasefire agreement expires, which has led to a drop in WTI crude oil prices. The WTI crude oil futures prices for June delivery fell 2.2% to around $86 per barrel at one point, while Brent crude oil futures prices rose 5.6% to over $95 per barrel on Monday. According to sources, Iran is planning to send a delegation to the capital of Pakistan. Previously, Iran had expressed caution about further peace talks with the United States. U.S. President Donald Trump said in a phone interview on Monday that Vice President Pence will depart later on Monday and continue the negotiations on "Tuesday night or Wednesday morning". Trump stated that he is "highly unlikely" to extend the ceasefire agreement, which is set to expire on "Wednesday night in Washington time". In recent days, market expectations on the progress of negotiations and whether ships can pass through the Strait of Hormuz have sharply changed, causing severe fluctuations in international oil prices. Around one-fifth of the world's oil is usually transported through this waterway. The standoff in the Strait of Hormuz could exacerbate the global energy crisis, which is just one of the many unresolved issues between Iran and the United States, including Iran's nuclear capabilities and Israeli incursions into Lebanon. Michael Tamvakis, professor of commodity economics and finance at the Bayes Business School, said, "Traders are still trading based on the high-profile statements from both sides, and they hope that this supply disruption is only temporary." During Monday's trading session, Trump made conflicting statements about the timing and feasibility of peace talks. Prices continued to rise when he stated that the U.S. will continue to block the Strait of Hormuz to prevent Iranian-related ships from passing until a final agreement is reached. Meanwhile, shipping through the Strait of Hormuz has actually stalled. Last weekend, the crisis escalated again: the U.S. Navy confiscated an Iranian ship, and Iran fired at the ship and regained control of the strait. Citigroup pointed out that if the shipping disruption in the waterway continues for another month, oil prices could rise to $110 per barrel. As of the time of writing, the WTI crude oil futures prices for June delivery fell 1.18% to $86.39 per barrel; while the Brent crude oil futures prices for June delivery rose 3.78% to $93.80 per barrel.