Oil Falls Nearly 20% from Its 2026 Peak in May

Global oil prices fell by roughly 20 percent from their 2026 highs in May as investors grew more optimistic about a potential long‑term ceasefire agreement between the United States and Iran that could reopen shipping lanes through the Strait of Hormuz.

Brent crude was down 1.2 percent on the month’s final trading day, trading at $92.56 as of 11:18 a.m. London time. The international benchmark dropped almost 19 percent during May, marking its worst monthly decline since the Covid‑19 pandemic. U.S. West Texas Intermediate (WTI) futures fell 16.5 percent year‑to‑date, and were last seen almost 1.9 percent lower at the weekend, trading at $87.18.

Energy prices have surged since the war began on February 28. Seaborne crude has largely been prevented from passing through the Hormuz Strait, the critical shipping lane between Iran and Oman that accounted for about 20 percent of global energy supply before the conflict.

The United States and Iran are understood to have “mostly agreed” on the terms of a 60‑day memorandum of understanding to extend the ceasefire, though the deal still requires sign‑off from President Donald Trump.

Despite renewed prospects for peace, strikes continued last Thursday, with Iranian forces firing ballistic missiles at Kuwait and launching attack drones toward the Strait.

Iranian crude loadings for May remained below 0.3 million barrels per day, sharply down from April’s average of 1.5 million barrels per day and March’s 1.7 million barrels per day, CNBC reported UBS as saying.