Athira Sethu
Kochi, 7 May 2026
Prices for Crude Oil Fell to Around $101 per Barrel Early Thursday Morning, May 7. This was because of the anticipation of a potential resolution of the dispute between the US and Iran. According to news reports, it was speculated that Iran would be reacting to the offer made by the US regarding the cessation of hostilities in the West Asia region.
The price of Brent crude was reported to fall to below $100 per barrel towards the end of Wednesday as investors looked forward to any positive developments arising out of the negotiations. Later in the day, prices for Brent crude recovered to around $101 per barrel in India. On the other hand, US West Texas Intermediate (WTI) crude rose above $102 per barrel in the opening trades on Wednesday, before falling to a level of $88.71 per barrel.
At the time of writing this, Brent crude was seen slightly higher at $101.55 per barrel as against $101.27 at the previous close. Similarly, WTI crude was marginally higher at $95.43 per barrel from $95.08 in the last closing session.
An imminent US-Iran peace pact is dominating the markets’ focus. CNN reported that Iran will shortly make its response concerning the US offer. It seems both parties are now leaning towards settling their differences. Former US President Donald Trump indicated there had been “great progress” made in the negotiations. On the other hand, according to BBC, the Iranian government is evaluating the US offer. However, the two nations are near an agreement.
While all this is happening, Israeli Prime Minister Benjamin Netanyahu stated that his country carried out an air raid in Beirut, striking a senior Hezbollah figure for the first time since the truce in Lebanon. Investors are holding their breaths while waiting to see how the US-Iran discussion proceeds and what it could do to the price of oil.
There were also gains in gold prices as investors seek security in volatile times. COMEX gold was trading at $4,719.60 per ounce during Wednesday night, higher than $4,694.30 recorded earlier. Gold’s price increased by almost 3.7% within five days but dropped more than 5% over the last month. One of the factors contributing to rising gold prices is the declining value of the US dollar, making it cheaper for buyers.
The United States dollar index indicated that the greenback was weaker at 97.969. This resulted in an increased interest in buying gold. Both the gold market and the oil market are under close watch as geopolitics plays a key role in determining prices.
