Global oil prices fall after US says progress in talks with Iran

New York, KOMPAS.com - Global oil prices eased slightly at the close on Tuesday (20 May 2026) local time or Wednesday morning (21 May 2026) WIB, after the United States said there had been progress in talks with Iran. Citing Reuters, Brent crude for July delivery fell 82 cents, or 0.73 percent, to $111.28 per barrel. Meanwhile, US West Texas Intermediate (WTI) for June delivery fell 89 cents, or 0.82 percent, to $107.77 per barrel. The more active WTI contract for July delivery closed down 23 cents at $104.15 per barrel. On Monday, Brent briefly touched its highest level since 5 May, while WTI reached its highest since 30 April. The price decline came after US Vice President JD Vance said Washington and Tehran had made positive progress in the peace talks related to the conflict in the Middle East. “We think we have made a lot of progress. We think the Iranians want to reach a deal,” Vance told reporters at the White House. Earlier, US President Donald Trump also said he had delayed a military strike on Iran that was initially scheduled for Tuesday. However, he emphasised the US was ready to resume strikes if no deal is reached. Nonetheless, traders remain wary of supply disruption risks to global oil due to the Middle East conflict. Again Capital’s John Kilduff said the market is still haunted by substantial uncertainty surrounding the conflict’s developments and the peace negotiations. “We are still facing significant supply shortfalls, and the region’s infrastructure is under threat. We can only hold our breath until a deal is reached or a new military action emerges,” Kilduff added. He added that the market now faces two highly likely scenarios that will decisively determine the direction of global oil prices. The Middle East conflict has also disrupted activity in the Hormuz Strait, a crucial shipping lane that normally carries about a fifth of the world’s oil and LNG shipments each day.