International crude oil prices declined for a second consecutive session after United States President Donald Trump indicated the possibility of a peace agreement with Iran, easing concerns over Middle Eastern supply disruptions.
According to a report published on Wednesday (6 May) by Reuters, Brent crude futures fell by $1.69, or 1.5 per cent, to $108.18 per barrel. This followed a sharper 4 per cent drop in the previous trading session. Similarly, West Texas Intermediate (WTI) crude dropped by $1.67, or 1.6 per cent, to settle at $100.60 per barrel.
The decline came after President Trump stated on Tuesday that the United States would temporarily suspend a naval operation aimed at ensuring safe shipping in the Strait of Hormuz. He suggested that Washington was moving towards a possible understanding with Iran, although he did not provide further details. No immediate response from the Iranian authorities was reported at the time.
Market analysts interpreted the announcement as a potential easing of tensions in the Middle East, particularly around one of the world’s most critical oil transit routes. The Strait of Hormuz is a key passage for global crude shipments, and any disruption in the area typically has an immediate impact on energy markets. The prospect of improved shipping conditions has raised expectations that oil supply flows from the Gulf region could gradually stabilise.
However, uncertainty remains. Experts cited in market commentary noted that even if a diplomatic arrangement were to progress, a return to normal supply conditions would not be immediate. Operational constraints, logistical adjustments, and ongoing geopolitical sensitivities are expected to continue influencing market sentiment in the short term.
President Trump also confirmed that the United States’ naval blockade of Iranian ports would remain in place. This measure has already contributed to reduced supply in global markets, with Brent crude previously reaching its highest level since March 2022 in the preceding week.
In parallel, tensions in the Strait of Hormuz have contributed to a drawdown in global inventories, placing additional pressure on refineries attempting to compensate for supply shortages.
Data from the United States indicates a continued decline in crude oil stockpiles. For the third consecutive week, inventories fell, with a reported decrease of approximately 8.1 million barrels as of 1 May. During the same period, gasoline stocks dropped by 6.1 million barrels, while other refined petroleum products declined by 4.6 million barrels.
Selected Market Indicators
| Category | Movement | Value / Change |
|---|---|---|
| Brent Crude | Decrease | $108.18 per barrel (-$1.69 / -1.5%) |
| WTI Crude | Decrease | $100.60 per barrel (-$1.67 / -1.6%) |
| US Crude Stocks | Decrease | -8.1 million barrels |
| Gasoline Stocks | Decrease | -6.1 million barrels |
| Other Petroleum Products | Decrease | -4.6 million barrels |
Overall, the market reaction reflects sensitivity to geopolitical signals from the Middle East, particularly those involving Iran and maritime security in the Strait of Hormuz. While prices have retreated from recent highs, traders continue to monitor developments closely, given the region’s significant role in global energy supply chains.