Oil prices fell sharply in early Asian trading Monday as signs emerged of a potential U.S.-Iran agreement that could ease Middle East supply concerns. President Trump indicated a deal announcement could come soon, claiming it would provide the U.S. with "free oil and free Hormuz Strait" access. He also suggested weekend talks with Tehran might occur.

Brent crude futures dropped 1.1% to $98.32 per barrel, while WTI crude futures fell 1.4% to $93.36. The Hormuz Strait, through which one-fifth of global oil flows, has been a focal point of regional tensions. Any deal easing sanctions on Iran could add significant supply to global markets.

Traders are closely watching diplomatic developments after months of elevated oil prices driven by Middle East supply risks. The potential agreement represents a major shift in U.S.-Iran relations and could fundamentally alter global oil market dynamics if sanctions relief materializes.