Oil prices drop as Trump pushes Iran peace talks

Oil prices fell 2% on Tuesday, May 19, 2026, after United States President Donald Trump said he had paused a planned attack on Iran to ‌allow for negotiations to end the war in the Middle East.

Brent futures for July delivery fell $2.26, or 2%, to $109.84 a barrel at 0352 GMT, while U.S. West Texas Intermediate crude for June delivery fell $1.22, or 1.1%, to $107.44.

In the previous session, the benchmarks hit their highest levels since May 5 and April 30, respectively.

The June WTI contract expires on Tuesday, while the most active July contract fell $1.63 or 1.6% to $102.75 per barrel.

Trump said on Monday there was a “very good chance” the U.S. ⁠could reach an agreement with Iran to prevent Tehran from obtaining a nuclear weapon, hours after announcing the pause in military action to allow talks.

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“While Trump’s signal has eased some immediate pressure, the fundamental risks persist. The market is now watching whether Trump’s comments represent a genuine shift toward de-escalation or just a tactical pause,” said Tim Waterer, chief market analyst at KCM Trade.

The Middle East conflict has effectively closed the Strait of Hormuz, a critical waterway that carries about a fifth of the global supplies of oil and liquefied natural gas, raising concerns over supply disruptions.

Iranian ‌Foreign Ministry ⁠spokesperson Esmaeil Baghaei confirmed on Monday that Tehran’s position had been conveyed to the U.S. via Pakistan but provided no further details.