Oil Falls Amid Hopes for US-Iran Peace
Oil prices fell more than 4% on Monday (May 25), hitting a two-week low, as market expectations grew for progress in negotiations between the US and Iran. Brent fell 4.3% to $99.10 per barrel, while WTI plunged 4.5% to $92.24 per barrel, after both posted weekly declines.
US President Donald Trump previously stated that the two countries were “largely in negotiations” on a deal that could reopen the Strait of Hormuz, a strategic waterway for nearly 20% of global energy supplies. However, thorny issues, including the blockade of the Strait of Hormuz and Iran’s uranium stockpile, remain obstacles, and negotiations continue without a final agreement.
Several LNG and oil tankers have begun leaving the Strait of Hormuz, signaling a gradual recovery in energy flows. However, analysts expect full normalization to take months, given the need to repair oil and gas facilities damaged by the conflict.
In the US domestic market, energy companies increased the number of oil and gas rigs for the fifth consecutive week in response to high local energy prices. The rig count reached 558, the highest since June 2025, although still slightly lower than the same period last year, according to Baker Hughes data.
This condition reflects persistently high market uncertainty, as geopolitical factors in the Middle East and domestic production policies continue to influence global oil prices. Investors are closely monitoring developments in US-Iran negotiations and oil inventory reports to anticipate the direction of oil prices in the coming weeks. (Arl)*
Source: Newsmaker.id
