Oil prices were down about 1% on Wednesday, May 20, 2026, after United States President Donald Trump again asserted the war with Iran will end “very quickly”.
Brent crude oil futures fell $1.11, or 1.0%, to $110.17 a barrel by 0640 GMT, while U.S. West Texas Intermediate futures were down $1.12, or 1.1%, to $103.03.
A senior oil research analyst at LSEG, Emril Jamil, said: “Benchmark prices softened on a potential deal as the market gauges the geopolitical outcomes.
“However, prices are likely to still exhibit some upside potential even if a deal is concluded, given that supply will likely not return to pre-war levels immediately.”
Both benchmarks fell nearly $1 on Tuesday after U.S. Vice President JD Vance said the U.S. and Iran had made progress in talks, with neither side wanting to see a resumption of military action.
“Investors are keen to gauge whether Washington and Tehran can actually find common ground and reach a peace agreement, with the U.S. stance shifting daily,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
“Oil prices are likely to remain elevated given the possibility of renewed U.S. attacks on Iran and expectations that, even if a peace deal is reached, crude supply will not quickly return to pre-war levels,” Tazawa added.
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Despite Trump’s assertion to U.S. lawmakers late on Tuesday about a quick end to the conflict, he earlier said the United States may need to strike Iran again and he had been an hour away from ordering an attack before postponing it.
His comments on the need to strike again came a day after he said he had paused a planned resumption of hostilities following a new proposal by Tehran to end the U.S.-Israeli war.
Trump also said Iran’s leaders are begging for a deal and warned a new U.S. attack would happen in coming days if no agreement was reached.
Some tankers have recently managed to cross through the Strait of Hormuz, though the number remains well below the 130 or so ships that typically transited daily before the war, according to Reuters.
Two supertankers exited the Strait of Hormuz on Wednesday, while another is making its way out after waiting in the Gulf for more than two months with 6 million barrels of Middle Eastern crude oil on board.
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