Oil prices have fallen sharply amid tentative hopes for a deal to end the US-Israel war on Iran.

Brent crude, the primary benchmark for global oil prices, fell about 5 percent on Sunday as US President Donald Trump gave mixed signals on the prospects for a permanent end to the conflict.

Brent futures for July stood at $98.47 a barrel as of 01:05 GMT, down about 9 percent from a month ago but still up by more than a third compared with before the start of the war.

Japan’s benchmark stock index, the Nikkei 225, surged more than 3 percent in morning trading, hitting an all-time high after closing at a record peak on Friday.

Trump said in a social media post on Sunday that negotiations with Tehran were proceeding in an “orderly and constructive manner”, but he had instructed officials “not to rush into a deal”.

“Both sides must take their time and get it right. There can be no mistakes!” Trump wrote on Truth Social.

Trump’s remarks came after he raised hopes for a breakthrough on Saturday by announcing that a deal had been “largely negotiated,” with the terms including the reopening of the Strait of Hormuz.

“Fundamentally, there is no change to the underlying picture, where 10-11 million barrels per day of crude oil continue to be shut-in for every day the Strait of Hormuz remains shut,” June Goh, a senior oil market analyst at Sparta in Singapore, told Al Jazeera.

“However, markets are expecting a gush of 100 million barrels of crude oil from the stranded ships to flow out once the deal is in place.”

Goh said markets are likely to remain on edge for some time after any deal is finalised.

“Sparta estimates still about three to six months required to get everything back to status quo, including time to bring production and refineries back online,” Goh said.

Iran has effectively blockaded the strait since the start of the war in late February, disrupting about one-fifth of the global oil trade.

The US has imposed its own blockade of Iranian ports since mid-April, further disrupting commercial shipping in the waterway.

In his Truth Social post on Sunday, Trump said the US blockade would remain “in full force and effect until an agreement is reached, certified, and signed”.

[Aljazeera]

Chasing the fourth playoffs spot, Kolkata Knight Riders (KKR) entered their match against Delhi Capitals (DC) at Eden Gardens hoping Mumbai Indians beat Rajasthan Royals at the Wankhede Stadium. In that case, KKR would have needed to chase down their target in about 12 overs to pip Punjab Kings on net run rate and finish in the top four. But with Mumbai losing, both PBKS and KKR were knocked out, reducing this match to a dead rubber as early as the fourth over of the first innings.

In the end, KKR lost this game as well. After DC rode on KL Rahul’s 30-ball 60 to post 203 for 5, KKR were 126 for 3 after 13 overs. Kuldeep Yadav then dismissed Ajinkya Rahane and Rinku Singh off successive deliveries to derail them. Eventually, KKR were all out for 163 in 18.4 overs.

US President Donald Trump says he has instructed negotiators “not to rush into a deal” with Iran, after earlier suggesting an agreement was close.

The deal under discussion reportedly involves a 60-day ceasefire extension, reopening the Strait of Hormuz and a plan for further negotiations over Iran’s nuclear programme.

In a social media post, Trump said “constructive” talks were proceeding but “both sides must take their time and get it right”.

Trump said on Saturday an agreement had been “largely negotiated”, prompting speculation an announcement could be imminent.

Iranian officials also signalled progress in talks over the weekend, with foreign ministry spokesperson Esmail Baghaei saying the two sides are both “very close and very far” from reaching an agreement.

According to US media, the mooted deal is not a final settlement, and instead leaves some of the thorniest issues to be negotiated later, including Iran’s demand for sanctions relief, its calls for the release of frozen Iranian funds, and Washington’s demands for Iran to curb its nuclear ambitions.

The reported deal has split Republicans, with some publicly arguing it is too lenient on Iran.

Senator Ted Cruz said it would be “a disastrous mistake”, while Roger Wicker, who chairs the Senate Armed Services Committee, said a 60-day ceasefire would mean “everything accomplished by Operation Epic Fury would be for naught!”

But Representative Mike Lawler, who sits on the House Foreign Affairs Committee, said the administration has managed to “force the remnants of this regime into a negotiation, a real negotiation”.

The US and Israel launched wide-ranging strikes on Iran on 28 February, sparking conflict across the Middle East. Iran responded by attacking Israel and US-allied states in the Gulf, and effectively closing the Strait of Hormuz, through which around 20% of the world’s oil and liquefied natural gas travels. The move sent oil prices soaring globally.

After a ceasefire was agreed in early April, the US established a blockade of Iranian ports which Trump says will remain “in full force and effect until an agreement is reached, certified, and signed”.

In Sunday’s post on Truth Social, Trump reiterated that Iran “must understand” it cannot develop a nuclear weapon. Tehran has repeatedly said its nuclear programme is solely for peaceful purposes.

Some reports in US media suggest the deal could see Iran agree to eventually hand over its highly-enriched uranium.

It is thought to have about 440kg (970 lbs) of uranium that is enriched up to 60% purity – a short process away from being enriched further to the weapons-grade 90%, which could allow Iran to create a nuclear bomb.

[BBC]