US-Iran Ceasefire Holds, Oil Prices Plunge 4 Percent
NEW YORK, KOMPAS.com - Global oil prices fell around 4 percent at the close of trading on Tuesday (5/5/2026) local time, or Wednesday (6/5/2026) morning WIB. The price drop was triggered by easing market concerns following reports that the ceasefire between the United States (US) and Iran is holding, despite recent exchanges of fire in the Gulf region. In addition, two US commercial vessels successfully transited the Strait of Hormuz under US military escort. Citing Reuters, Brent crude oil prices dropped $4.57, or 4 percent, to $109.87 per barrel. Previously, on Monday’s trading, oil prices had surged around 6 percent due to concerns over potential disruptions to global energy supplies from the Middle East. Analysts from energy consultancy firm Ritterbusch and Associates assessed that the price decline occurred due to market optimism regarding the continuation of the US-Iran ceasefire. “The market is likely experiencing selling pressure triggered by optimistic comments from the Trump administration regarding the ongoing ceasefire with Iran,” wrote the Ritterbusch and Associates analysts in their note. However, they also assessed that the weakening of oil prices was more influenced by technical factors following the sharp rise in Brent prices over the past week. The United Arab Emirates (UAE) government had previously stated that its country was still facing missile and drone threats from Iran on Tuesday. However, Washington affirmed that the ceasefire remains in effect. US Secretary of Defense Pete Hegseth even stated that shipping lanes in the Strait of Hormuz have been successfully secured. “Hundreds of ships are queuing to transit that vital waterway,” said Hegseth. The US military also stated that two US-flagged commercial vessels successfully transited the Strait of Hormuz with escort from a US Navy guided-missile destroyer. Meanwhile, Iran denied attacking the UAE in recent days and refuted claims that any vessels had successfully transited the Strait of Hormuz. On the other hand, the United Nations Security Council has begun discussing a draft resolution supported by the US and Bahrain regarding Iranian threats to commercial shipping in the Strait of Hormuz.