Trump Delays Attack on Iran, Oil Prices Fall to US$110
Jakarta, CNBC Indonesia – Global oil prices edged lower in early Tuesday trade on 19 May 2026, after having surged to their highest levels in several weeks the day before. Markets started to unwind geopolitical risk premia following U.S. President Donald Trump’s announcement of a delay to plans to attack Iran to create space for new negotiations.
According to Refinitiv data as of 09:50 WIB on Tuesday, Brent crude was at US$110.01 per barrel, down from Monday’s close of US$112.1. West Texas Intermediate (WTI) was at US$107.71 per barrel, lower than the previous level of US$108.66.
Although down this morning, oil prices remained near the highest levels of May. In the past two weeks, Brent rose by almost 10% from US$100.06 on 7 May to above US$110 per barrel. WTI has climbed by more than US$13 per barrel from early May levels.
Earlier sharp gains were driven by the escalation of conflict in the Middle East, fuelling concerns about global energy supply. The Strait of Hormuz, a vital route through which around one-fifth of the world’s oil supply flows, was effectively disrupted by the conflict. This created market jitters as oil tankers and global energy distribution were under mounting pressure.
Reuters reported that Trump said there is a ‘very good chance’ that Washington and Tehran could reach a new agreement on Iran’s nuclear programme. The remarks came just hours after the White House announced the postponement of military action against Iran.
The market reacted quickly. Brent fell more than 2% during Asian trade, while WTI corrected by more than 1%. Market participants say the next direction will depend heavily on progress in U.S.-Iran negotiations and the tanker-shipping situation in the Strait of Hormuz.
KCM Trade analyst Tim Waterer said the market remains cautious as the main risks have not disappeared. Investors are watching whether Trump’s move signals a permanent de-escalation or merely a tactical pause amid a still-hot conflict.
Amid diplomatic efforts, Iran was said to have sent a fresh peace proposal via Pakistan. Pakistan is reported to be acting as a communications mediator between Washington and Tehran, though negotiations progress slowly. Semi-official Iranian media even claimed the U.S. would ease Iran’s oil export sanctions during talks; this claim was quickly denied by U.S. officials.
Another factor keeping oil prices elevated comes from U.S. energy stocks. The U.S. Department of Energy reported a release of 9.9 million barrels from the Strategic Petroleum Reserve (SPR) last week. That figure represented the largest drawdown in the latest period and reduced stocks to around 374 million barrels, the lowest since July 2024.
Fatih Birol, head of the International Energy Agency (IEA), also warned that global commercial oil stocks are continuing to shrink rapidly due to conflict and disruptions to sea distribution. In normal circumstances, global oil inventories can act as a cushion during supply disruptions. But this time the buffer for the market is becoming thinner.