Global oil prices plunge 5% as US opens diplomatic channels with Iran

WASHINGTON - Global oil prices plummeted over 5% on Wednesday (27 May 2026) after the United States opened greater diplomatic channels with Iran, easing market concerns over global supply disruptions.

Oil prices fell following US Secretary of State Marco Rubio’s statement that the US would give the best chance for talks with Iran to succeed.

West Texas Intermediate (WTI) futures dropped more than 5% to close at $88.68 per barrel, while the international benchmark Brent crude also fell over 5% to close at $94.29 per barrel.

Rubio said President Donald Trump prefers diplomacy but has other options if negotiations fail, likely referring to renewed military strikes.

“The key is we prefer the diplomatic path through negotiations and we will give every opportunity for this path to succeed,” said US Secretary of State Marco Rubio, according to CNBC on Thursday (28 May 2026).

It is worth noting that around 20% of global oil supply passes through the Strait of Hormuz before the war.

“That strait will be open to all. It is international waters, no one will control it,” Trump said in a cabinet meeting.