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United States – Global oil prices fell sharply on May 25, 2026, as traders reacted to growing optimism over a possible peace agreement between Washington and Tehran and the potential reopening of the Strait of Hormuz. Brent crude futures dropped by $5.09, or 4.9%, to $98.45 per barrel, while U.S. West Texas Intermediate declined by $5.22, or 5.4%, to $91.38 per barrel, with both benchmarks touching their lowest levels since May 7 during early Memorial Day trading. The sell-off followed U.S. President Donald Trump’s remarks on Saturday that a deal with Iran had been “largely negotiated,” with terms that would include restoring oil flows through the key shipping chokepoint, which has been effectively closed to normal traffic since U.S. and Israeli military operations against Iran began on February 28. United States – Trump moderated his tone on Sunday, saying on social media that negotiations were moving in an “orderly and constructive manner” but instructing officials “not to rush into a deal,” adding that the agreement “isn’t even fully negotiated yet.” Senior U.S. officials said it could take several more days to finalize a memorandum of understanding, while Secretary of State Marco Rubio warned any accord would be unworkable if Iran seeks permanent control over Strait shipping. Analysts said even a swift reopening would not return prices to pre-war levels soon, though JPMorgan projected an average of $97 a barrel for the rest of 2026 if the Strait reopens in early June. Gasoline prices in the U.S. averaged $4.51 a gallon on Sunday, making this Memorial Day weekend the most expensive for fuel in four years, while Asian equity markets, led by Japan’s Nikkei 225, rallied on the peace signals as U.S. markets remained closed for the holiday.

By Daniel Hayes | JQJO News