Oil prices fell due to the postponement of a US strike on Iran.
Amid the postponement of the planned US strike on Iran and possible negotiations to end the war in the Middle East, oil prices decreased by 2%.
On Tuesday, May 19, Brent crude oil futures for July delivery fell by $2.26, or 2%, to $109.84 per barrel. Meanwhile, WTI crude oil futures for June delivery dropped by $1.22, or 1.1%, to $107.44. In the previous session, these indexes reached their highest levels since early May and late April, respectively.
The June WTI contract expires on Tuesday, while the more active July contract decreased by $1.63, or 1.6%, to $102.75 per barrel. This price decline occurred after US President Donald Trump announced the deferred strike on Iran to allow for the possibility of negotiations.
The conflict in the Middle East led to the effective closure of the Strait of Hormuz, through which about one-fifth of the world’s oil volumes are transported. This raises concerns about possible supply disruptions, yet recent indications of negotiations provide hope for a potential de-escalation of the situation.
President Trump stated that the decision was made after consultations with leaders from Qatar, Saudi Arabia, and the UAE, who called for a peaceful resolution to the conflict.
| Type of Oil | Delivery | Price Decrease |
|---|---|---|
| Brent | July | $2.26 (2%) |
| WTI | June | $1.22 (1.1%) |
| WTI | July | $1.63 (1.6%) |
