Oil Prices Plummet Amid Iran Uncertainty
Oil prices fell on Wednesday (May 20) as the market awaited further developments in negotiations between the United States and Iran. Brent for July, the global benchmark, fell 2.5% to $109.25 per barrel, while West Texas Intermediate (WTI) fell 1.9% to $102.35 per barrel, after both contracts also fell about 1% on Tuesday.
Two Chinese-flagged supertankers left the Strait of Hormuz on Wednesday, raising hopes of normal supply flows through the vital waterway. A South Korean-flagged vessel also exited the narrow strait off Iran's southern coast, which has been virtually closed since the start of the US-Israel war against Iran in late February.
US President Donald Trump said the war with Iran could end "very quickly" after postponing a planned military strike. Vice President JD Vance added that Iran had shown a willingness to reach a deal, boosting energy markets.
In its latest peace proposal, Iran calls for a cessation of hostilities on all fronts, the withdrawal of US troops, and compensation for war damages. However, the US has rejected most of the previous offers, emphasizing that ending Iran's nuclear ambitions remains a key condition.
The market is also awaiting the release of US oil inventory data to assess oil stocks amid ongoing supply disruptions. Data from the American Petroleum Institute showed a decline of 9.1 million barrels last week, well above the 3.4 million barrels expected, which is usually a signal for official government data.
As the US increases oil exports to cover global supply shortages, Trump has ordered the release of 172 million barrels from the Strategic Petroleum Reserve to stem price spikes caused by the Iran conflict. This action is expected to ease supply tensions while oil prices remain closely monitored by investors. (Arl)*
Source: Newsmaker.id
