Oil Prices Plunge as US Reportedly Nears Peace Deal with Iran
JAKARTA - Crude oil prices plummeted sharply on Wednesday (6 May 2026). This extends the downward trend following reports that the US and Iran are nearing an agreement to end the conflict.
The international benchmark for Brent crude futures fell 8.2% to $100.83 per barrel at 06.43 US time.
Meanwhile, the US West Texas Intermediate oil price dropped 9.8% to $92.28.
Previously, both benchmark prices closed down more than 3.9% in the prior session.
The US is reportedly expecting Iran to respond to several key points within the next 48 hours.
Currently, no agreement has been reached between the two parties, but sources say this is the closest Washington and Tehran have come to a deal since the war began on 28 February.
A spokesperson for Iran’s Foreign Ministry stated that they are evaluating Washington’s 14-point peace proposal. Meanwhile, the White House has not commented.
Previously, Iran stated on Wednesday that they would only accept a fair peace agreement.
On Tuesday (5 May 2026), US President Donald Trump announced in a Truth Social post that the US would temporarily halt Operation Freedom.
This is a military effort launched the previous day to escort commercial ships through the Strait of Hormuz, citing progress in negotiations with Iran towards a final agreement.
ING’s Head of Commodities Strategy, Warren Patterson, said that an agreement normalising oil flows through the Strait of Hormuz is crucial.
Around 13 million barrels per day of supply have been disrupted, largely offset by stocks, which are clearly depleting rapidly.
“This makes the market increasingly vulnerable each day. Tighter stocks will only make the oil market more volatile in increasingly unpredictable ways,” he added.
Meanwhile, Azimut Group’s Head of Fixed Income Division, Nicolo Bocchin, warned that surging oil and energy costs have caused a global drop in demand.
“Even if sea routes are reopened, normalising shipping and trade flows will still take weeks,” he concluded.