NEW YORK - Global oil prices weakened at the close of trading on\nThursday (7 May 2026) local time, or Friday morning (8 May 2026) WIB,\namid volatile trading due to the latest developments in the Iran-US\nconflict.<\/p>\n
The decline occurred after reports emerged that Saudi Arabia and\nKuwait had lifted restrictions on US use of their airspace and military\nbases.<\/p>\n
This move opens the possibility for Washington to resume commercial\nship escort operations in the Strait of Hormuz starting this week.<\/p>\n
Quoting Reuters, Brent crude oil fell $1.21, or 1.2%, to $100.06 per\nbarrel. Meanwhile, US West Texas Intermediate (WTI) crude fell 27 cents,\nor 0.28%, to $94.81 per barrel.<\/p>\n
In yesterday\u2019s trading session, both global oil benchmarks even\ndropped as much as $5 per barrel due to optimism that Washington and\nTehran are getting closer to a temporary agreement to halt the\nconflict.<\/p>\n
Sources and related officials stated that the US and Iran are now\ncloser to a limited and temporary agreement to stop the war. However,\nthe draft agreement is said to still leave several of the most sensitive\nissues unresolved and does not lead to a comprehensive peace\nagreement.<\/p>\n
SEB Research analyst Ole Hvalbye said that a truly reached agreement\nis likely to push oil prices further down.<\/p>\n
\u201cA confirmed agreement would likely bring Brent prices back to the\n$80 to $90 per barrel range quickly,\u201d he said.<\/p>\n
However, he warned that negotiation failures or a Trump shift back to\nmilitary strike options could immediately drive oil prices sharply\nhigher.<\/p>\n
\u201cIf talks fail or Trump opts for strikes again, prices could surge\nabove $120 per barrel,\u201d Hvalbye said.<\/p>\n
He added that while a memorandum of understanding could reduce the\nrisk premium in futures markets, its impact on physical oil supplies\nwould not be immediate. This is because the market needs weeks or even\nmonths to return to normal after an agreement is reached.<\/p>\n
Meanwhile, Chinese media Caixin reported that a Chinese company\u2019s oil\nproducts tanker was attacked near the Strait of Hormuz on Monday. This\nincident marks the first time a Chinese oil tanker has been targeted in\nan attack.<\/p>\n
The impact of the Iran war also became the main topic at the ASEAN\nSummit in Cebu, Philippines, on 7-8 May 2026.<\/p>\n
ASEAN countries once again called for unity in facing serious threats\nto their energy import-dependent economies.<\/p>\n
In a draft statement obtained by Reuters, ASEAN leaders are scheduled\nto call for good-faith negotiations between the US and Iran, as well as\nan end to hostilities.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/oil-prices-fall-after-us-considers-escorting-ships-in-strait-of-hormuz-1778205287", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }