Oil prices drop over 2% amid US blockade of Iranian shipping and uncertain peace talks

Oil prices fell sharply as the US initiated a blockade on Iranian ports in the Persian Gulf, tightening supply concerns. US crude futures dropped over 2% to $96.91 per barrel, while Brent crude fell nearly 1.9% to $97.49. The blockade threatens Iran's oil exports through the Strait of Hormuz, a key route for 1.7 million barrels per day. Meanwhile, US Vice President JD Vance indicated that further peace talks depend on Iran's response after recent unsuccessful negotiations, keeping the geopolitical outlook uncertain for oil markets.