Global Oil Prices Fall Again, US-Iran Peace Signals Pressure Prices
Global oil prices weakened again during trading on Wednesday (6/5/2026), continuing the decline from the previous day. This softening was triggered by market expectations that oil supplies from the Middle East region could resume if a peace agreement is reached between the United States (US) and Iran. Citing Reuters, Brent crude oil prices fell by $1.69 or 1.5% to $108.18 per barrel at 06:40 GMT. Previously, Brent had dropped around 4% during Tuesday’s trading session (5/5/2026). The oil price decline occurred after US President Donald Trump signalled the possibility of reaching a peace agreement with Iran. He even stated that he would temporarily halt escort operations for ships in the Strait of Hormuz as part of efforts towards that agreement. This move has sparked hopes that ships previously held up in the Gulf area can resume operations, allowing global oil supplies to gradually recover. “It will take time for trade flows to return fully to normal, even if an agreement is reached,” said Pham. On the other hand, Trump emphasised that the blockade of Iranian ports would remain in place. This policy had previously restricted global supplies and driven up oil prices, with Brent reaching its highest level since March 2022 last week. In a statement on social media, Trump said the temporary halt of escort operations was to provide space for finalising the agreement with Iran. This development comes amid rising military tensions in the region. Earlier in the week, US forces reportedly destroyed several small Iranian vessels, as well as cruise missiles and drones, while escorting a tanker out of the Gulf through the Strait of Hormuz. Data from the American Petroleum Institute (API) shows that US crude oil inventories have fallen for three consecutive weeks. In the week ending 1 May 2026, crude oil stocks decreased by 8.1 million barrels. Additionally, gasoline inventories fell by 6.1 million barrels, and distillate stocks shrank by 4.6 million barrels compared to the previous week.