How did oil prices perform on Friday, May 2026?

Brent crude slipped 34 cents (0.3%) to $94.05 per barrel, while WTI held at $88.89 per barrel. Both benchmarks recovered slightly from earlier intraday declines of around 1%, but the weekly trend remained sharply negative.

Why are oil prices falling this week?

Brent has dropped roughly 9% and WTI nearly 8% due to investor uncertainty over a tentative ceasefire extension between the U.S. and Iran. Market participants are weighing potential geopolitical relief against ongoing domestic hurdles and restricted shipping through the Strait of Hormuz.

What is the significance of the Strait of Hormuz for oil markets?

The Strait of Hormuz is a key chokepoint historically carrying about a fifth of global oil and LNG supplies. Although current traffic is much lower than pre-conflict levels, any disruption or reopening can materially impact global crude flows and prices.

What are the obstacles to the tentative U.S.-Iran deal affecting oil markets?

The agreement has not yet been finalized. U.S. President Donald Trump has not signed off, and Iranian state media confirm the deal is pending. Investors are cautious because the outcome will determine whether maritime restrictions ease.

How volatile have oil prices been recently?

Market volatility has been elevated, with both Brent and WTI swinging by as much as $6 in response to conflicting signals on the geopolitical situation, illustrating sensitivity to news flow regarding U.S.-Iran tensions.

Image for illustrative purposes only. Not a real photo.

Oil steadies near $94 but heads for steepest weekly loss since April on Iran deal hopes

Written by Jon CuthbertPublished May. 29 2026Last Updated May. 29 2026

Oil prices stabilized on Friday but remained on track for their sharpest weekly decline since early April, as investors weighed reports of a tentative ceasefire extension between the U.S. and Iran against a backdrop of lingering political hurdles.

Brent crude futures for July delivery slipped 34 cents, or 0.3%, to $94.05 a barrel by 0810 GMT, recovering from an earlier intraday drop of more than 1%.

West Texas Intermediate futures hovered steadily at $88.89 a barrel, similarly clawing back from a 1% decline earlier in the session.

Despite Friday's stabilization, Brent has plunged roughly 9% this week, marking its steepest weekly retreat since April 6.

WTI has shed nearly 8%, tracking toward its biggest weekly loss since April 13.

Market volatility has intensified in recent sessions, with both benchmarks swinging by as much as $6 on conflicting signals regarding the geopolitical conflict.

On Thursday, the U.S. and Iran reached a preliminary agreement to extend a ceasefire and ease maritime restrictions in the Strait of Hormuz.

The vital chokepoint historically carried a fifth of global oil and liquefied natural gas supplies, but current traffic through the waterway remains a small fraction of pre-conflict levels.

The tentative deal faces crucial domestic hurdles before taking effect.

U.S. President Donald Trump has yet to sign off on the terms, and Iranian state media indicated that the agreement has not been finalized.

"While oil flows through the Strait of Hormuz remain restricted and oil inventories keep falling, the market focus remains on the possibility of a deal between the U.S. and Iran," said Giovanni Staunovo, commodity analyst at UBS.

Analysts at ING noted that while a formal reopening of the waterway would offer immediate relief to tight global oil markets, a full structural recovery for supply lines remains highly uncertain.

The ongoing maritime disruptions continue to reshape global trade flows, particularly for Asian buyers.

Japan, which relies heavily on Middle Eastern supply, registered a 66% year-on-year plunge in crude oil imports last month compared to the same period last year.

Underlying physical markets show signs of tightening despite the paper market selloff.

Data released Thursday by the Energy Information Administration showed a decline in U.S. crude, gasoline, and distillate stockpiles, driven by rising demand from domestic refiners and consumers.

The inventory draw occurred despite a sharp drop in American crude exports, which fell by 1.16 million barrels per day to 4.4 million barrels per day.