Oil Price Falls to $91 as World Stocks Rally
1.
Signs of Progress in Peace Talks
o Oil prices fell and
global stock markets gained after indications that the United States and Iran
were nearing a preliminary agreement to end the conflict.
2.
Cease-Fire Negotiations Continue
o Negotiators were
discussing a memorandum of understanding that appeared close to approval,
although disagreements remained over key issues, particularly the status of the
Strait of Hormuz.
3.
Trump to Make Final Decision
o Donald Trump stated that he would
meet advisers at the White House to make a final determination on the proposed
cease-fire arrangement.
4.
Oil Prices Decline
o Brent crude fell 1.7%
to $91.12 per barrel
for August delivery.
o West Texas Intermediate
(WTI) crude also dropped 1.7% to $87.36
per barrel for July delivery.
5.
U.S. Stock Market Extends Gains
o The S&P 500 rose 0.2%,
recording its ninth consecutive weekly gain as investors welcomed prospects for
reduced geopolitical risk.
6.
Asian Markets Rally
o Energy-importing Asian
economies reacted positively:
§ KOSPI surged 3.5%.
§ Markets in Japan and Taiwan rose more than
2%.
7.
European Markets Mixed
o The Stoxx Europe 600 edged
up 0.1%, while broader European trading remained mixed.
8.
Gasoline Prices Ease
o The U.S. national
average gasoline price fell by four cents to $4.39 per gallon, although prices remain
47% higher than before the conflict began.
9.
Diesel Prices Remain Elevated
o Average diesel prices
declined to $5.52 per
gallon, but are still 47% above pre-war levels.
10.
Market Sentiment Improves
o Investors interpreted
the potential cease-fire and reduced risk of disruptions through the Strait of
Hormuz as positive developments for global energy supplies and economic
stability.
Key Takeaway:
Financial markets responded positively to growing expectations of a U.S.–Iran
cease-fire, with oil prices declining and global equities advancing as concerns
over energy supply disruptions in the Strait of Hormuz eased.
Oil
prices fell and stocks rose on Friday (29.05.2026), on tentative signs that the
United States and Iran were nearing a preliminary agreement to end the war.
Negotiators
were discussing a new memorandum of understanding that appeared close to winning
approval from both sides, although disagreements remained over several key provisions.
One major hurdle was the status of the Strait of Hormuz, a critical trading route
for oil and gas tankers from the Middle East. President Trump said that he would
meet with advisers in the White House on Friday to make a “final determination”
on a cease-fire deal.
The
potential breakthrough followed a volatile week in which U.S. and Iranian forces
exchanged sporadic fire, highlighting the risks of renewed escalation as well as
the fragility of the current truce.
Oil prices decline.
·
The
price of Brent crude, the global benchmark for oil, fell 1.7 percent in choppy
trading to $91.12 a barrel for August delivery, currently the most heavily
traded contract.
·
West
Texas Intermediate crude, the U.S. benchmark, also fell 1.7 percent to $87.36 a
barrel for July delivery, currently its most popular contract.
U.S. stocks notch ninth
weekly gain.
·
The
S&P 500 rose 0.2 percent on Friday, marking its ninth consecutive weekly
gain.
·
Stocks
in Asia, where countries import vast quantities of oil and gas, were mostly
higher. South Korea’s benchmark KOSPI jumped 3.5 percent, while stock markets
in Japan and Taiwan rose more than 2 percent.
·
In
Europe, stocks were mixed. The Stoxx 600, a broad index that tracks the
region’s largest companies, edged up by 0.1 percent.
Gasoline prices fall.
·
Gas
prices fell again on Friday, sliding four cents to a national average of $4.39
a gallon, according to the AAA motor club. The increase has raised the cost for
drivers by 47 percent since the war began.
·
Gas
prices don’t move in lock step with crude, usually trailing increases or drops
by a few days.
·
The
average price of diesel fell to $5.52 on Friday, up 47 percent since the start
of the war.