WTI Crude Plunges to $92 as Trump Signals Progress on Iran Deal

Key Facts

In a move reflecting a radical shift in the geopolitical landscape, WTI crude oil prices retreated sharply to $92, marking the lowest level since May 7. This plunge followed statements from President Trump indicating that a deal under negotiation could reopen the Strait of Hormuz, leading to a significant supply surge. Prices fell from a monthly high of $110.92 as the market reacted to the surprise pivot toward diplomacy instead of military escalation.

This decline coincides with broader selling pressure across energy benchmarks, with Brent crude falling over 4% to trade below $96 per barrel per market data. According to Goldman Sachs analysts, a full return of Iranian oil could add up to 1 million barrels per day to global supply, shifting the deficit observed in the previous quarter. While API data on May 19 showed a massive inventory draw of 9.1 million barrels, the geopolitical breakthrough has clearly become the primary driver of price action.

Traders should watch the $90 psychological support level, with WTI trading at $92 (close May 24, 2026). Looking ahead, upcoming inflation data from the UK and Canada on May 20 will be critical for US Dollar direction and commodity pricing. Furthermore, any official confirmation regarding the timeline of the Iran deal will serve as the next major catalyst for volatility in the energy sector.