At the close of trading on 29/5, Brent crude oil fell 1,7% to 91 USD a barrel. US WTI crude oil saw a similar decrease, settling at 87,3 USD.

For the entire month of May, Brent crude lost over 19% – its sharpest drop since 3/2020, when the pandemic led to widespread economic lockdowns and a plunge in fuel demand. WTI crude also decreased nearly 17% this month, marking its worst performance since 4/2025.

Brent crude oil price movements over the past year. Chart: Trading Economics

The market declined as investors anticipated the US and Iran moving closer to a peace agreement, which would facilitate the reopening of the Strait of Hormuz. Prior to the conflict, this crucial waterway transported 20% of global crude oil and liquefied natural gas (LNG). Global oil prices surged after the conflict erupted in late February, at one point exceeding 120 USD a barrel, reaching a four-year high.

On 29/5, US President Donald Trump announced a meeting in the Situation Room at the White House, reiterating longstanding demands that Iran agree to never develop nuclear weapons and to reopen the critical shipping lane through the Strait of Hormuz. The meeting lasted approximately two hours.

"President Trump will only sign an agreement that benefits the US and meets his red lines", AFP news agency reported on 29/5, citing an unnamed White House official.

US officials also stated on 28/5 that negotiating delegations from the US and Iran had agreed to extend a ceasefire for an additional 60 days, lift restrictions on transport through the Strait of Hormuz, and commence negotiations on Iran's nuclear program. However, President Trump will still need to sign off on this memorandum of understanding.

Ha Thu (according to Reuters, CNBC)