Crude Oil Tumbles on Sustained Gulf War Peace Optimism

Crude oil prices declined sharply on June 5, 2026, as market optimism over a diplomatic resolution to the Gulf war continued to drive a sell-off. West Texas Intermediate (WTI) for July delivery fell $2.34, or 3.2%, to settle at $71.05 a barrel on the New York Mercantile Exchange, marking a two-week low. Brent crude, the international benchmark, dropped $2.15, or 2.9%, to $75.20. The slide extended a weekly loss of more than 8%, fueled by reports that warring parties neared a ceasefire agreement. Easing fears of supply disruptions in the Strait of Hormuz, which handles about a fifth of global oil flows, prompted traders to unwind risk premiums. Analysts cautioned that any return of previously sidelined barrels could compound pressure on OPEC+ to extend its existing production cuts through the third quarter.