Oil Prices Plummet Nearly 20% Amid U.S.-Iran Ceasefire Talks

In May, global oil prices experienced a significant decline, dropping nearly 20% from their 2026 peak. Brent crude oil prices fell by 1.2% to $92.56, marking a nearly 19% decrease for the month, which was noted as one of the worst since the COVID-19 pandemic.

The U.S. West Texas Intermediate (WTI) futures price also fell by 16.5% for the month, reaching $87.18.

The drop in prices is linked to increasing optimism regarding a potential ceasefire deal between the U.S. and Iran, which could unlock shipping routes through the Strait of Hormuz, a critical passage for global energy supplies. The U.S. and Iran are reportedly close to agreeing on a 60-day memorandum of understanding to extend the ceasefire, although the deal requires approval from President Donald Trump.

Meanwhile, Iranian crude oil loading in May remained significantly lower at 0.3 million barrels per day, down sharply from April's average of 1.5 million barrels per day.