Oil Prices Fall Over 5% as US–Iran Talks Advance, Supply Focus

On May 24, 2026, international oil prices fell sharply in late trading after the start of the new trading week, following signs of progress in US–Iran peace negotiations over the weekend, with intraday losses exceeding 5%.

Data showed that US West Texas Intermediate (WTI) crude oil futures for July delivery fell as much as $5.24 to $91.36 per barrel, a drop of 5.42%. Brent crude futures for July delivery declined as much as $5.42 to $98.12 per barrel, down 5.32% from the previous settlement.

US President Donald Trump said on May 23 that the United States and Iran had largely reached an agreement, pending final approval by both sides and relevant Islamic countries. The proposed deal reportedly includes the opening of the Strait of Hormuz. Iran's Fars News Agency reported in the early hours of May 24 that Trump's remarks about the Strait of Hormuz being opened were 'incomplete'.

In a social media post on May 24, Trump said negotiations with Iran were 'proceeding in an orderly and constructive manner', adding that he had instructed US representatives not to rush into reaching a deal with Iran.

Separately, the Islamic Revolutionary Guard Corps Navy public relations department said on May 24 that 33 vessels, including oil tankers, container ships, and other commercial vessels, passed through the Strait of Hormuz over the past 24 hours.

Also on May 24, representatives from Oman and Iran held talks in Muscat, the Omani capital, discussing principles for regulating navigation through the Strait of Hormuz under international law, and exchanging views on ensuring the safety of shipping, trade, and supply chains.