Crude oil prices slide 19% in May, post worst monthly fall since 2020; Will US-Iran peace deal deepen losses?

Crude oil prices declined on Friday, 29 May, after the US and Iran tentatively agreed to extend the ceasefire by 60 days, raising hopes of smoother oil flows through the Strait of Hormuz. Brent crude slipped towards $92 per barrel and is on track for its biggest monthly decline since 2020, falling nearly 19% in May, while WTI crude hovered around $87.

Reports suggested that shipping through the Strait of Hormuz could remain unrestricted, although US officials indicated that discussions were still ongoing and no final agreement had been reached.