Crude Futures Drop Sharply on Iran-US Deal Prospect

by Ship & Bunker News Team
Monday May 25, 2026

Crude futures fell sharply on Monday morning as hopes grew for a potential peace deal between the US and Iran that could reopen the Strait of Hormuz and ease concerns over global oil supply disruptions.

The ICE July Brent contract traded at $97.76/bl as of 6:48 AM in London, down by 5.6% from a settlement of $103.54/bl on Friday.

On Saturday, US President Donald Trump said in a social media post that the memorandum of understanding on the peace deal has been largely negotiated.

However, later reports said Trump told negotiators he was “in no rush” to finalise the agreement, signalling that discussions could still take time despite market optimism.

Meanwhile, Iranian media outlet Tasnim reported on Sunday that Iran had made it clear no agreement would be reached without the release of a specified portion of its frozen assets.

A deal would allow shipping traffic in the Strait of Hormuz to return to normal after disruptions caused by the conflict between the US, Israel and Iran that began in late February.

The conflict has also dented bunker demand in Fujairah, with fewer vessels transiting the region amid ongoing security concerns.

Ship & Bunker News Team
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