World Oil Prices Fall to Two-Week Low

World oil prices fell to a two-week low during early Asian trading on Monday, 25 May 2026. The price decline followed growing market optimism about the prospects of a US-Iran peace deal. However, the two countries remain at odds over key issues. According to Reuters, Brent crude oil dropped $4.71, or 4.55%, to $98.83 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude fell $4.57, or 4.73%, to $92.03 per barrel. Both contracts touched their lowest levels since 7 May 2026 at the start of trading. US President Donald Trump said on Saturday, 23 May 2026, that Washington and Iran had ‘largely negotiated’ a peace agreement memorandum. The deal is expected to reopen the Strait of Hormuz, but the parties still differ on critical issues. MST Marquee analyst Saul Kavonic said markets are beginning to see potential for geopolitical tensions to ease. However, risks remain high. ‘Despite the conditions and risks still looming over the peace deal and the reopening of the Strait of Hormuz, there is now a glimmer of hope that could provide short-term relief for oil prices,’ Kavonic said.