Oil trends below $ 100

Tuesday, 26 May 2026 07:19 - - {{hitsCtrl.values.hits}}

Oil prices fell below $100 a barrel on Monday and stock markets rose on hopes that the US and Iran are inching closer to a peace deal.

Brent crude futures, the global oil benchmark, were down 6% to $97.43 a barrel, the lowest level in two weeks, with hopes that an agreement to end the near three-month US-Israeli war on Iran can be struck.

However, while a framework has been negotiated, the US and Iran remain at odds over key issues such as Iran’s blockade of the strait of Hormuz. An Iranian government spokesperson cautioned that an agreement was “not imminent”. The strait’s de facto closure sent energy prices soaring after the US and Israel first launched missile strikes on Tehran on 28 February.

Even if the strait reopens, analysts say a return to normal oil flows will take months, while damaged energy infrastructure in Qatar and elsewhere is repaired. Last week, Barclays stuck to its average Brent crude oil price forecast of $100 this year, but said there were risks it could be higher.

Two tankers carrying liquefied natural gas were exiting the strait on Monday, heading to Pakistan and China, while a supertanker with Iraqi crude left the Gulf bound for China on Saturday after being stranded for almost three months, Reuters reported, citing shipping data.

Despite the fall on Monday, oil prices remain much higher than in the run-up to the Iran war, when a barrel of Brent crude was trading at about $ 70.

Japan’s Nikkei rose nearly 3% and the pan-European Stoxx 600 index was up 1%. Several markets were closed on Monday for a public holiday, including in the US and the UK. Stocks have largely shrugged off fears over the war’s consequences for the world economy, and focused more on the artificial intelligence boom and strong company profits.

The dollar dipped 0.3% against a basket of major currencies on Monday. The pound gained almost 0.6% to $1.3506, the highest since mid-May.

Gold climbed 1.46% to $ 4,574 an ounce.