Oil Prices Dip as U.S.-Iran Ceasefire Extension Hopes Emerge

Global oil prices edged lower on May 29, 2026, after reports emerged of a tentative U.S.-Iran agreement to extend their ceasefire by 60 days. Brent crude, the international benchmark, slipped 0.1% to $92.58 per barrel, while U.S. benchmark crude also fell 0.1% to $88.81 per barrel. Prices remain well above pre-war levels—Brent was trading around $70 per barrel in late February before hostilities escalated. The tentative deal, still pending final approval from President Donald Trump, aims to prevent Iran from imposing tolls on ships transiting the Strait of Hormuz while gradually lifting the U.S. sea blockade on Iranian ports.

Analysts caution that any recovery in oil supply would be gradual, even if the strait reopens, due to lingering market uncertainty and the time required to restore production. “The oil market continues to edge lower amid growing optimism that the U.S. and Iran are moving toward a deal,” noted ING commodities strategists Warren Patterson and Ewa Manthey. “A reopening of the strait would offer some immediate relief to the oil market with tankers leaving the Persian Gulf. However, the recovery is still uncertain.” Investors are closely monitoring the Strait of Hormuz, a critical chokepoint for global oil shipments, where the tentative accord seeks to ensure safe passage.

Meanwhile, global stock markets surged to record highs, led by gains in Japan and South Korea. Tokyo’s Nikkei 225 jumped 2.5% to close at a record 66,329.50, while South Korea’s Kospi surged 3.6% to 8,476.15, driven by technology stocks amid the AI boom. Samsung Electronics rose 5.8%, and SK Hynix gained 1.9%. In Europe, the FTSE 100 rose 0.2% to 10,446.42, the DAX gained 0.3% to 25,157.61, and the CAC 40 added 0.9% to 8,262.90.

Wall Street also pushed to new records, with the S&P 500 climbing 0.6% to 7,563.63, the Dow Jones Industrial Average up less than 0.1% to 50,668.97, and the Nasdaq composite gaining 0.9% to 26,917.47. The U.S. dollar strengthened slightly to 159.28 yen, while the euro slipped to $1.1634.