Oil Prices Drop 20% Amid U.S.-Iran Ceasefire Optimism
Global oil prices have experienced a significant decline, dropping by around 20% from their 2026 peaks. This decrease is attributed to growing optimism regarding a potential long-lasting ceasefire agreement between the U.S. and Iran. The ceasefire is expected to facilitate the reopening of the Strait of Hormuz, a critical shipping lane for global energy supply. Brent crude, the international price benchmark, fell by 1.2% on the last trading day of May, marking a nearly 19% decline for the month. Similarly, U.S. West Texas Intermediate futures have decreased by 16.5% month-to-date. Despite the positive outlook for a ceasefire, security concerns persist due to ongoing missile strikes in the Gulf region. 
