NEW YORK / Content Syndication Services / – Global oil prices fell sharply as Brent crude futures dropped more than 4% during trading before settling lower, extending volatility in energy markets tied to Middle East supply routes. Brent closed down 3% at $91.45 a barrel after touching its lowest level since April 17. U.S. West Texas Intermediate crude settled 3.4% lower at $88.20 a barrel.
The slide followed statements from Iran and Israel that they had stopped attacks after a call from U.S. President Donald Trump. The decline eased some of the recent pressure on oil prices, which had moved sharply during weeks of disruption in the region. Brent crude remains a key global benchmark for oil traded through Intercontinental Exchange contracts.
The Strait of Hormuz stayed central to the oil market’s focus. The route handles major crude and fuel flows from the Gulf. Shipping limits there have disrupted exports and forced buyers to seek other barrels. The latest Brent crude move showed how quickly oil prices can shift when traders receive fresh signals on conflict and transport conditions.
Supply routes remain central
The U.S. Energy Information Administration said in its June outlook that very limited shipping traffic through the Strait of Hormuz had led Middle East producers to reduce crude oil production by more than 11 million barrels per day in May from pre-conflict levels. It said global oil inventories continued to fall as markets met demand through stock draws.
The same report said lower oil demand and reports of possible United States and Iran talks had pulled the Brent spot price lower in May. It projected Brent crude would average $105 a barrel in June and July under its near-term assumption that most shipping through Hormuz remains closed. The report also placed 2026 Brent at $95 on average.
Inventories add market context
U.S. petroleum data added another layer to the price move. Commercial crude inventories, excluding the Strategic Petroleum Reserve, fell by 8 million barrels in the week ended May 29. Stocks stood at 433.7 million barrels, about 3% below the five-year average for this time of year. Total commercial petroleum inventories fell by 2.6 million barrels.
Fuel demand indicators remained mixed. Total products supplied over the latest four-week period averaged 20.4 million barrels per day, up 3% from a year earlier. Motor gasoline supplied averaged 8.8 million barrels per day, up 0.6%. Distillate fuel supplied averaged 3.6 million barrels per day, up 1.2%, while jet fuel supplied rose 0.4%.