breaking

Oil Prices Plummet on Iran Ceasefire Optimism; Hormuz Shipping Remains Uncertain

Global crude benchmarks have collapsed nearly 20% in May following tentative progress toward a 60-day ceasefire between the U.S. and Iran. This marks the worst month for energy prices since the Covid-19 pandemic. Brent crude fell to $92 per barrel, while West Texas Intermediate futures declined 16.5% month-to-date. The breakthrough could restore shipping through the Strait of Hormuz, which handles roughly 20% of worldwide energy supplies before the February conflict disrupted flows. However, security concerns persist. Iranian forces launched ballistic missiles at Kuwait and attack drones toward the strait on Thursday despite ceasefire talks. Analysts note Iranian crude loadings remain critically depressed at below 0.3 million barrels daily in May, compared to 1.5 million barrels daily in April. Vessel traffic through the region remains extremely limited, with little near-term improvement anticipated pending final agreement from President Donald Trump.