Oil prices fell 5% after Trump confirmed that talks with Iran are progressing in a “constructive manner.”

Oil prices fell by around 5% on Monday after US President Donald Trump signaled progress in talks with Iran over reopening the Strait of Hormuz, although he stressed that the United States would not rush to finalize a deal.

US West Texas Intermediate crude futures dropped about 5.8% to $90.95 a barrel by 7:35 a.m. Eastern Time, while global benchmark Brent crude futures fell by nearly the same percentage to $97.60 a barrel.

Trump said in a social media post on Sunday: “The negotiations are proceeding in an organized and constructive manner, and I have instructed our representatives not to rush into an agreement because time is on our side.”

The US president had said on Saturday that an agreement with Iran regarding the reopening of the Strait of Hormuz and other issues had been “largely negotiated” and would be announced soon.

Trump had previously suggested that the conflict with Iran was close to being resolved before tensions escalated again and oil prices surged.

US crude lost more than 8% last week, while Brent crude fell by more than 5%, after Trump said he had canceled imminent airstrikes on Iran to allow more time for negotiations.

Despite the recent declines, prices remain more than 30% higher since the United States and Israel launched attacks on Iran on February 28.

Iran has imposed an effective blockade on shipping traffic through the Strait of Hormuz since early March, with vessels now required to obtain permission from Tehran to pass or risk being targeted in attacks.

The blockade was imposed following US and Israeli strikes that killed Iranian Supreme Leader Ayatollah Ali Khamenei along with several senior Iranian officials.

The Strait of Hormuz is considered one of the most critical chokepoints in the global oil market, with around 20% of global supplies passing through it before the outbreak of the war.

The Iranian blockade has sharply reduced oil exports from the Middle East, triggering the largest supply disruption in history.

The United States responded by imposing a blockade on Iranian ports and vessels. Trump said on Sunday that the US blockade would remain “fully in effect until an agreement is reached, ratified, and signed.”