Oil Price Today, May 29, 2026: Oil Slips at $93.2 on Reports of Potential U.S.-Iran Ceasefire Deal

Mumbai, May 29:Oil prices slipped on Friday and were headed for sharp weekly losses after reports suggested the U.S. and Iran were close to extending their ceasefire and easing shipping restrictions through the Strait of Hormuz, calming fears of prolonged supply disruptions in the Middle East.

Brent crude futures slipped about 0.5% at $93.2 per barrel, while U.S. West Texas Intermediate crude also declined 0.8% at $88.2. The losses added to the recent pullback in oil prices, with both benchmarks set for their steepest weekly decline in nearly two months.

The decline came after reports indicated Washington and Tehran had reached a preliminary understanding to prolong their ceasefire for another 60 days and gradually restore shipping activity through the Strait of Hormuz  one of the world’s most strategically important oil transit routes.

Hormuz Relief Eases Supply Fears

Both benchmarks eased as markets took heart from possible peace arriving in Middle East. Source: oilprice.com

The Strait of Hormuz handles roughly a fifth of global oil trade, making it a key chokepoint for energy markets. Concerns over disruptions in the waterway had previously sent crude prices surging amid fears that escalating tensions between the U.S. and Iran could severely impact global supplies.

However, the latest reports raised hopes that energy shipments through the route could stabilise, easing pressure on oil markets.

Analysts said traders were unwinding some of the geopolitical risk premium that had built into crude prices over the past few weeks as fears of a broader regional conflict receded.

Still, markets remained cautious as uncertainty persisted over whether the proposed agreement would ultimately befinalised.

Uncertainty Keeps Volatility Elevated

U.S. President Donald Trump has not formally approved the proposed arrangement, while Iranian state media said negotiations were continuing and no final deal had yet been reached.

The conflicting signals kept investors wary of sudden reversals in sentiment, with analysts expecting crude prices to remain highly sensitive to geopolitical headlines in the near term.

Some analysts also cautioned that even if an agreement is reached, shipping activity through the Strait of Hormuz may take time to fully normalise as shipping companies and insurers remain cautious about regional security risks.

Weekly Losses Mount

The latest fall in crude prices pushed Brent and WTI toward weekly declines of nearly 10%, reversing a sharp rally seen earlier this month when fears of supply disruptions had driven prices above the $100-per-barrel mark.

Improving diplomatic signals between Washington and Tehran, along with easing concerns over immediate military escalation, have since helped cool oil markets.

Softer Oil Supports Global Sentiment

The decline in crude prices also lifted broader market sentiment globally, particularly in oil-importing economies such as India, where lower energy costs help ease inflationary pressures and improve fiscal balances.

Asian equities advanced on Friday, while Wall Street’s S&P 500 and Nasdaq closed at record highs overnight as investors welcomed softer oil prices and improving geopolitical sentiment.

Analysts said oil-sensitive sectors such as aviation, paints, chemicals and oil marketing companies could remain in focus if crude prices continue to ease further.

Source:

• rates from oilprice.com