Crude oil prices tumble as US-Iran peace prospects ease supply fears
The sharp decline followed reports that the United States and Iran were nearing an initial peace agreement that could eventually pave the way for the gradual reopening of the Strait of Hormuz
Global crude oil prices plunged on Wednesday, 6 May 2026, falling to their lowest levels in two weeks after growing optimism over a possible de-escalation in the Middle East conflict weighed heavily on the market.
Brent settled $8.60/ton, or 7.83%, lower at $101.27/barrel, after briefly slipping below the $100/barrel mark for the first time since 22 April.
WTI dropped $7.19/barrel, or 7.03%, to settle at $95.08/barrel.
The sharp decline followed reports that the United States and Iran were nearing an initial peace agreement that could eventually pave the way for the gradual reopening of the Strait of Hormuz and the easing of the US blockade on Iranian ports.
While no formal agreement had been reached, the development fuelled expectations that marine traffic through the Strait of Hormuz — a key artery for global energy shipments — could resume in the coming months.
The closure of the strait since the outbreak of the Iran war in February had triggered one of the most severe supply disruptions in modern history, sharply tightening global crude availability and pushing Brent crude prices to their highest levels since March 2022 last week.
Supply losses stemming from halted marine traffic through the waterway had also accelerated the drawdown of global crude oil and fuel inventories, as refiners worldwide scrambled to offset production shortfalls.
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