Oil Futures Fall Over 1% Amid Reports of US-Iran Ceasefire Deal

Oil futures dropped more than 1% on May 29, 2026, after Reuters reported the U.S. and Iran had agreed to extend a ceasefire, raising prospects for the reopening of the Strait of Hormuz and easing immediate supply fears. Brent crude for July delivery fell $1.04, or 1.1%, to $92.67 a barrel at 0330 GMT, while West Texas Intermediate lost $1.26, or 1.4%, to $87.64. For the week, Brent plunged 10.5%—its steepest decline since early April—and WTI slumped 9.2%, the worst weekly drop since mid-April. The agreement, reached Thursday, awaits final approval from U.S. President Donald Trump; Iranian state media said it had not been finalized. The Strait of Hormuz, a chokepoint for roughly one-fifth of global oil and LNG, has seen traffic severely curtailed since the three-month conflict began. “Consensus remains the conflict is over, and a deal is coming. As long as this narrative holds, crude oil has room to extend its decline toward trendline support in the low $80s,” said IG analyst Tony Sycamore. Analysts at ING cautioned that a recovery in upstream production would be gradual, given storage constraints and damaged infrastructure.