Global oil price gains 3% as U.S. Military strikes on Iran add to peace deal uncertainty

Subscribed with another email? Logout and Login with that one. Account subscription benefits alongside Premium Stories, Editorials, Opinions and more. Unlock these with Subscription The View From India Looking at World Affairs from the Indian perspective. First Day First Show News and reviews from the world of cinema and streaming. Today's Cache Your download of the top 5 technology stories of the day. Science For All The weekly newsletter from science writers takes the jargon out of science and puts the fun in! Data Point Decoding the headlines with facts, figures, and numbers THEdge At the cutting edge of education and careers Health Matters Ramya Kannan writes to you on getting to good health, and staying there Gender Agenda Stories from beyond the binary. The Hindu On Books Books of the week, reviews, excerpts, new titles and features. Published - May 26, 2026 03:30 pm IST - London A drone view shows vessels sailing through the Strait of Hormuz, as seen from Musandam, Oman. File | Photo Credit: Reuters Brent crude oil rose 3% on Tuesday (May 26, 2026) after the U.S. military carried out strikes in Iran, adding to uncertainty on whether a deal will be imminently reached to end the war and open up shipping flows through the Strait of Hormuz. U.S. Secretary of State Marco Rubio said on Tuesday (May 26, 2026) that negotiating a deal with Iran could "take a few days", quashing hopes for an imminent end to the conflict a day after U.S. forces conducted what Washington called defensive strikes in southern Iran. "We are still waiting for more details on a potential deal," said Giovanni Staunovo at UBS. "Meanwhile we see renewed tesions in the West Asia, while flows through the Strait remain restricted." Global benchmark Brent was up $3.04, or 3.2%, to $99.18 a barrel as of 0820 GMT, after settling 7% lower in the previous session. U.S. West Texas Intermediate was down $4.07, or 4.2%, from Friday's (May 22, 2026) close, at $92.53. There was no WTI settlement on Monday (May 25, 2026) due to the U.S. Memorial Day holiday. "While differences between the parties have narrowed, any eventual peace deal would likely lead only to a gradual reopening, meaning the current tight supply outlook could take months to normalise," said Ole Hansen at Saxo Bank. Tehran has effectively halted nearly all non-Iranian shipping into and out of the Gulf via the Strait of Hormuz since the war began, choking off about a fifth of global oil and liquefied natural gas flows. The strikes happened as Iran's top negotiator and its Foreign Minister were in Doha for talks with Qatar's Prime Minister on a potential deal with the U.S. to end the three-month-old war. Both Washington and Tehran said they have made progress on a memorandum of understanding that would halt the war and give negotiators 60 days to reach a final deal. Nikkei reported, citing a West Asian diplomatic source, that Iran would clear mines from the strait within a 30-day window under the agreement, after which vessels from all countries could navigate freely and safely, with Tehran also ending transit-fee collection. Ship-tracking data showed that three LNG tankers passed through the Strait in recent days, heading to Pakistan, China and India, along with a supertanker carrying Iraqi crude to China that had been stranded for nearly three months. U.S. President Donald Trump on Monday (May 25, 2026) repeated his demand that Iran hand over its enriched uranium so it could be destroyed. "It's a sharp reminder that the deal could still collapse at the 11th hour, much like the five previous attempts before it," said Tony Sycamore, a market analyst at IG. Copyright© 2026, THG PUBLISHING PVT LTD. or its affiliated companies. All rights reserved. Terms & conditions | Institutional Subscriber Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Global oil price gains 3% as U.S. Military strikes on Iran add to peace deal uncertainty

Key takeaways

Also covered by

Global oil price gains 3% as U.S. Military strikes on Iran add to peace deal uncertainty

Key takeaways

Also covered by

More in international