Oil slips to 2-week low as US and Iran seen moving closer to peace deal

By Reuters 25 May 2026, 3:06 am

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Workers walk in an area at a degassing station in Zubair oil field, whose operations have being reduced due to the Mideast war triggered by the US and Israeli attacks on Iran, near Basra, Iraq, March 28, 2026. (AP Photo/Leo Correa, File)

Oil prices hit two-week lows amid optimism that the US and Iran are moving closer toward a peace deal, even though they remain at odds over key issues, including Iran’s blocking of the Strait of Hormuz, which continues to restrict oil supply from the Middle East.

Brent crude futures fall $4.71, or 4.55%, to $98.83 a barrel by 10:34 GMT (1:34 a.m. Israel time), while U.S. West Texas Intermediate was at $92.03 a barrel, down $4.57, or 4.73%.

Both contracts touched their lowest since May 7.