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Oil Tumbles 20% on US-Iran Ceasefire Breakthrough

businessJun 1, 2026·346 words·3 min read

Oil prices recorded their sharpest monthly fall since 2020 on Friday, with Brent crude on track to drop about 20% in May after the White House confirmed that US and Iranian negotiators had reached a tentative agreement to extend a ceasefire. Axios first reported the breakthrough on Thursday, sending Brent — the global oil benchmark — to an intraday low of $93.36 a barrel before it recovered slightly to around $94. By Friday afternoon it had eased a further 1.3% to $91.51, while West Texas Intermediate slipped 1.9% to $87.19.

The war started on 28 February. The US and Israel attacked Iran. Iran then threatened ships in the Strait of Hormuz. This narrow sea path carries about a fifth of the world's oil. The strait has been mostly closed since. Brent briefly jumped to $120 a barrel, from about $70 before the war. BBC (a British news service) said the US attacked an Iranian port this week. President Donald Trump will meet his team to make a final decision.

Even so, gasoline is still nearly 50% higher than before the war. Oil bosses warn supplies are very low. ExxonMobil's Neil Chapman said oil could pass $150 a barrel within weeks. Chevron's top boss Mike Wirth said it could take "weeks and weeks" to clear sea mines and move 2,000 trapped ships from the strait. Experts say oil prices may need six to eight weeks to settle after fighting ends.

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