Breaking News: Oil Prices Plunge 5% as US and Iran Edge Towards Peace

Jakarta, CNBC Indonesia - Oil prices plunged due to new hopes that the United States (US) and Iran will reach a peace agreement to end the war in the Middle East, on Wednesday (6/5/2026).

The international benchmark Brent crude, for instance, fell 6.2% to US$103.04 per barrel. Meanwhile, the main US contract, West Texas Intermediate, dropped 6.4% to US$95.68 per barrel.

Previously, US President Donald Trump ordered the halt of military operations in the Strait of Hormuz, which he had previously called “Project Freedom”. This came a day after the announcement that US forces would officially escort commercial ships across the Strait of Hormuz on Monday, which sparked tensions with Iran.

Trump reasoned that he wants to reach a peace agreement with Iran. He stated that “significant progress has been made” towards the agreement.

“We have agreed that, although the blockade will remain fully in place, Project Freedom… will be temporarily suspended for a short period to see if the Agreement can be completed and signed,” Trump said, as reported by AFP.

The announcement was made after Foreign Minister Marco Rubio stated that the US had completed its offensive operation against Iran, “Epic Fury”. That operation had previously killed several Iranian leaders, though it did not stop the country’s retaliation.

However, there has been no response from Iran on this yet.