NEW YORK, May 24 (Xinhua) -- Crude oil futures price lost around 5 percent late Sunday as trading started for the new week due to reported progress in peace talks between the United States and Iran.

West Texas Intermediate crude for July delivery dropped as much as 5.35 U.S. dollars, or 5.53 percent, to 91.25 dollars per barrel at one point. Brent crude for July delivery sank 5.57 dollars, or 5.38 percent, to 97.97 dollars a barrel at the low point.

U.S. President Donald Trump announced Saturday that a peace agreement with Iran has been "largely negotiated," subject to finalization between the United States, Iran and other relevant countries in the Middle East.

A proposed agreement the United States and Iran are close to signing involves a 60-day ceasefire extension, during which the Strait of Hormuz would be reopened, Iran would be able to freely sell oil, and negotiations would be held on curbing Iran's nuclear program, Axios quoted a U.S. official as saying on Saturday.

U.S. Secretary of State Marco Rubio said the United States was prepared to enter "into very serious talks" about Iran's nuclear program if Iran reopened the Strait of Hormuz, The New York Times reported on Sunday.

Meanwhile, the Navy of Iran's Islamic Revolution Guard Corps (IRGC) on Sunday said 33 vessels had passed through the Strait of Hormuz within the past 24 hours in coordination with and after obtaining permission from its forces.

Still, Hamad Hussain, a commodities economist at Capital Economics, warned that it would be hard for energy supplies to go back quickly to the level prior to the start of the war on Iran due to damage to facilities, halted oil production and broader obstacles to shipping through the Strait of Hormuz.

Oil prices will stay elevated for some time and would only start to trend lower as and when the supply-demand balance in the oil market materially improves, which is likely to be well into 2027, said Hussain. ■