Oil Prices Drop Again! US-Iran Peace Signals Reverse Market Direction
Jakarta, CNBC Indonesia - Global oil prices corrected again during trading on Wednesday (6/5/2026) morning Indonesian time. After a sharp surge last week, the market direction changed rapidly amid hopes of easing conflict in the Middle East.
According to Refinitiv data as of 09:55 WIB, Brent crude oil was at US$108.12 per barrel. Meanwhile, West Texas Intermediate (WTI) was recorded at US$100.75 per barrel. Both continued the weakening from the previous day, where Brent was still at US$109.87 and WTI at US$102.27.
This movement extended the correction trend over the last two days. However, if traced back to the start of the week, prices had reached a high of US$114.44 for Brent on 4 May and even exceeded US$118 at the end of April. This means that within days, selling pressure arrived quite deeply.
The market direction shifted after a statement from US President Donald Trump opening the possibility of reaching a peace agreement with Iran. He mentioned progress towards a comprehensive agreement, although details have not yet been disclosed to the public.
The statement immediately shifted market expectations. Until now, conflict around the Strait of Hormuz has pressured global supply. This route plays a vital role as it channels about one-fifth of the world’s oil and gas supply. When this route is disrupted, prices are driven up. Now, hopes of reopening the supply flow have created downward price pressure.
Trump also announced a temporary suspension of US military tanker escort operations to allow room for negotiations. On the other hand, the blockade of Iranian ports is still ongoing. This situation places the market in a phase of tug-of-war between geopolitical risks and potential supply normalisation.
From a fundamental perspective, US oil inventory data adds another layer to the story. Crude oil stocks were reported to have fallen by 8.1 million barrels in the last week. Declines also occurred in petrol by 6.1 million barrels and distillates by 4.6 million barrels. These figures indicate that global supply was indeed tight beforehand.
However, for now, geopolitical sentiment is more dominant. The market is beginning to recalculate the worst-case scenarios that previously drove the price rally. If distribution routes return to smooth operation, upward pressure on prices could ease further.