International crude oil prices extended their decline for a second consecutive day following indications from United States President Donald Trump of a possible peace agreement with Iran.
According to a report published by Reuters on Wednesday (6 May), Brent crude futures fell by $1.69, or 1.5%, settling at $108.18 per barrel. This follows a 4% decline recorded in the previous trading session. Similarly, US West Texas Intermediate (WTI) crude dropped by $1.67, or 1.6%, to reach $100.60 per barrel.
On Tuesday, President Trump stated that operations previously conducted by the United States to ensure safe navigation of vessels in the Strait of Hormuz had been temporarily suspended. He also indicated that Washington was moving towards a potential understanding with Iran, though he did not provide further details. Iran did not issue an immediate response to these remarks.
Market analysts interpret the announcement as a possible sign of easing tensions in the Middle East. It is expected that oil tankers stranded in the Gulf region may gradually resume movement, which could lead to an increase in global supply.
However, uncertainty remains in the market. Experts suggest that even if a formal agreement is reached, it would take time for supply conditions to fully normalise.
President Trump also stated that the United States’ naval blockade of Iranian ports would continue. This restriction has already contributed to reduced global supply, pushing Brent crude prices last week to their highest level since March 2022.
Meanwhile, tensions in the Strait of Hormuz have contributed to a decline in global inventories. Refiners are reportedly under pressure as they attempt to offset supply shortages.
Market data also indicates that crude oil inventories in the United States have fallen for a third consecutive week. On 1 May, stocks declined by approximately 8.1 million barrels. During the same period, petrol inventories dropped by 6.1 million barrels, while stocks of other refined petroleum products fell by 4.6 million barrels.
Summary of Key Market Movements
| Category | Change | Latest Level/Result | Time Reference |
|---|---|---|---|
| Brent Crude | -$1.69 (-1.5%) | $108.18 per barrel | 6 May |
| WTI Crude | -$1.67 (-1.6%) | $100.60 per barrel | 6 May |
| Brent (previous session) | -4% | — | Previous day |
| US crude inventories | -8.1 million barrels | — | 1 May |
| Petrol inventories (US) | -6.1 million barrels | — | 1 May |
| Other fuel inventories (US) | -4.6 million barrels | — | 1 May |
The combination of geopolitical signals, ongoing restrictions, and declining inventories continues to influence global oil price movements, with markets closely monitoring developments in US–Iran relations and supply conditions in the Gulf region.
