Crude Oil Slumps as Strait of Hormuz Reopening Expectations Rise

Crude oil prices tumbled on May 29, 2026, as traders priced in a higher likelihood of the Strait of Hormuz reopening, easing immediate supply disruption fears. The strategic waterway—a chokepoint for roughly 20% of global petroleum flows—had been effectively blocked due to regional military action, tightening global supplies. Brent futures slid more than 4% to settle near $68 per barrel, while West Texas Intermediate dropped a similar margin below $64. The selloff accelerated after diplomatic signals suggested Iran may be allowed to resume oil exports if the strait reopens under a pending ceasefire. Analysts cautioned that while the move lower reflects short-term relief, compliance and navigation safety remain uncertain, limiting further downside risk until actual tanker transits resume.