Athira Sethu
Kochi, 25 May 2026
The price of crude oil witnessed a sharp fall during the morning session of Monday in Asian markets amid reports stating that the United States and Iran have agreed to come up with an understanding aimed at ending the ongoing conflict between both nations. This is the third month since the war began, and expectations of peace are alleviating fears about the global oil market.
Prices of Brent crude oil fell by over 5% below the $100 per barrel mark, which marks the first drop below this price in the last month. Prices of US crude oil, commonly referred to as West Texas Intermediate (WTI), also fell below the $100 per barrel mark.
Prices of oil have been relatively high in recent weeks due to the fears of escalating tensions that might affect the global oil supply chain. However, with the talks between the United States and Iran continuing, investor fear has diminished as there will be no supply crisis.
According to reports, both nations are expected to sign an MoU, which might mark the start of efforts to bring the end of the crisis. Despite the fact that US President Donald Trump announced that his nation will continue with its blockades of the Strait of Hormuz until a formal agreement is reached, markets have welcomed the news of some progress made in the negotiations.
Strait of Hormuz is one of the world’s key oil routes where one-fifth of all oil exports pass every year. The ongoing conflicts caused reduction in shipping activities in the area. According to official figures released by Iran, 33 ships had already gone through the strait after the end of the crisis, but market specialists expect the shipping volumes to return to normal within a month.
Market analysts explained that previous increases in the cost of crude oil had been caused by expectations about possible bad outcomes. Currently, the situation seems to be improving.
.Oil trading activities will likely be limited due to public holidays in both the United States and the UK.
