Analyst: The US-Iran talks show "signs of hope," and short-term oil prices temporarily ease.

Gold Financial reports that on May 25th, Monday morning Asian trading hours, both U.S. and Brent crude oil prices fell to two-week lows, due to market optimism that the U.S. and Iran are close to reaching a peace agreement, despite disagreements on key issues including the blockade of the Strait of Hormuz. U.S. President Trump stated on Saturday that Washington and Iran have "basically agreed" on a memorandum of understanding for a peace deal, which would reopen the Strait of Hormuz. However, both sides still have disagreements on several thorny issues, and Trump said on Sunday that he has told his representatives not to rush into any agreement with Iran. MST Marquee energy analyst Saul Kavonic in Sydney said, "Although there are many uncertainties and risks surrounding the peace agreement and the Strait of Hormuz, there is a glimmer of hope, which will bring some relief to short-term oil prices." However, analysts expect that it will take months for oil transportation through the strait to return to normal and for damaged oil and gas facilities to be repaired.
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