Oil Prices Set to Slump 19% in May as Market Bets on U.S.-Iran Deal
Brent dropped 19% this month as traders bet a 60-day ceasefire extension could reopen the Strait of Hormuz, analysts said.
- Oil prices dropped 19% in May as the United States and Iran tentatively agreed to a 60-day ceasefire extension, fueling market optimism that transit through the Strait of Hormuz may resume.
- The closure of the Strait of Hormuz, subject to blockades by Washington and Tehran, triggered a global energy shock, causing a massive supply disruption over the past three months.
- Brent Crude dropped toward $92 a barrel and West Texas Intermediate neared $87, marking the steepest monthly decline since 2020 after prices slumped below $100.
- Treasury Secretary Bessent identified "the waterway reopening" and Iran turning over highly enriched uranium as President Donald Trump's "red lines" for any pact, while significant hurdles remain.
- White House officials stated this week that Trump wants "a good deal" or none at all, though experts warn that even a ceasefire extension leaves fundamental infrastructure issues unresolved.
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13 Articles
Gas prices sink as oil set for 20% drop — largest one-month decline since 2020
Prices at gas pumps are starting to sink and oil is on track to drop 20% in May -- its largest one-month decline since 2020 -- as investors remain optimistic that a deal to end the Iran war is near.
Oil Prices Set to Slump 19% in May as Market Bets on U.S.-Iran Deal
Early on Friday, oil prices were on track to plunge by 19% in May as traders and speculators bet on an extended ceasefire and an eventual U.S.-Iran deal despite the biggest physical supply disruption in history. Brent Crude prices were poised to drop by 19% in May by the end of the trade day on Friday, which would be the steepest monthly decline in prices since 2020. Early on Friday, Brent Crude front-month futures traded flat at $93.84 per barr…
Oil Set for 19% Collapse in May as Traders Bet On Truce Renewal
(Bloomberg) — Oil fell as the US and Iran tentatively agreed to extend a ceasefire by 60 days, with Brent set for the biggest monthly drop since 2020 on optimism that flows through the Strait of Hormuz may resume.
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