Oil prices drop on hopes for Iran war peace talks, dragging BP and Shell shares lower

Oil prices fell sharply from $107 to below $96 a barrel amid hopes for a peace deal in the US-Israel-Iran conflict, causing BP and Shell shares to decline. The drop followed news of a "memorandum of understanding" largely negotiated to end the war, though fresh US strikes on Iran raised tensions again. Analysts see the 48-day ceasefire as a sign the conflict may soon end, but recent price falls raise concerns about future earnings for oil majors. Market watchers will monitor ongoing talks and regional stability for further impact on oil prices and energy stocks.