Oil Prices Head for Monthly Loss as US-Iran Peace Deal Hopes Ease Supply Fears

Oil prices were on track for a sharp monthly drop on Friday, as prospects of a US-Iran peace deal fueled expectations of rising crude supply. Brent crude futures fell 1.2% to $72.80 a barrel, extending May’s decline to about 8%. West Texas Intermediate (WTI) shed 1.4% to $68.90, also headed for its worst month since November 2025. The sell-off accelerated after reports that Washington and Tehran were finalizing an interim agreement that could lift Iranian oil sanctions, potentially adding up to 1 million barrels a day to global markets. "A deal would significantly alter the supply-demand equation," said an analyst at a major brokerage. The diplomatic breakthrough overshadowed previous price support from OPEC+ output curbs and seasonal demand, shifting market sentiment aggressively bearish.