EL7.AI
CommoditiesMediumUpdated×3•Originally published 24 May 2026•Updated 25 May 2026•
1 min read

Oil Prices Plunge 5% on Iran Talk Progress Despite 30% Rally Since February

Key Facts

1Oil prices declined as a deal to end the Iran conflict appears close, despite Trump stating there is no rush.

Oil prices dropped by 5% following comments from U.S. President Donald Trump indicating that talks with Iran are progressing. According to reports, these diplomatic signals helped ease immediate supply disruption fears, even as Trump noted there is no immediate rush to finalize a deal. Despite this intraday plunge, crude prices remain significantly elevated, holding gains of over 30% since the U.S. and Israel launched strikes against Iran in late February.

This price correction occurs as major energy producers, including Exxon Mobil (XOM) and Chevron (CVX), show mixed performance amid crude volatility, per market data. Analysts suggest that a sustained de-escalation in the Strait of Hormuz could further erode the geopolitical risk premium that has characterized the market since the first quarter, potentially testing the support levels established during the recent rally.

Looking ahead, markets are monitoring demand-side pressures after EL7 data showed China's Industrial Production fell to 4.1% as of May 18, 2026, missing expectations. Traders should also focus on the upcoming speech by Fed Governor Waller on May 19, 2026, which may influence U.S. Dollar strength and the subsequent pricing of dollar-denominated commodities.

Latest Updates · 1

  1. Notable·

    Update: Oil prices dropped to a two-week low as of May 25, 2026, following reports from Reuters that the US and Iran are making significant progress toward a deal. These developments reinforce expectations of a potential return of Iranian supply to global markets, adding further downward pressure on crude prices in the near term.