Oil futures rise on technical recovery and US-Iran deal optimism
Updated
Updated · The Wall Street Journal · May 6
Oil futures rise on technical recovery and US-Iran deal optimism
8 articles · Updated · The Wall Street Journal · May 6
In early Asian trade, front-month WTI gained 1.2% to $96.18 a barrel and Brent rose 0.9% to $102.19.
ANZ Research said the rebound followed overnight losses and reflected hopes an agreement could be reached within days to end the Middle East conflict.
Analysts cautioned the situation remains highly fluid, with intraday volatility likely to stay elevated until clearer substance emerges; earlier trading had already shown a modest rebound.
With core nuclear issues unresolved, is this peace deal just a tactical pause before the next major Mideast conflict?
Can a one-page memo truly secure the world's most vital oil chokepoint after a devastating regional war?
Historic Strait of Hormuz Closure Cuts 13 Million Barrels Per Day, Driving Global Oil Crisis and Economic Fallout
Overview
The global oil market in 2026 has been deeply shaken by the closure of the Strait of Hormuz in March, which cut off over 13 million barrels per day of oil exports and caused a historic supply shock. This disruption led to soaring fuel prices, widespread demand destruction, and severe economic slowdown worldwide. Diplomatic efforts, including a U.S.-Iran peace proposal under review, sparked a brief oil price rebound in May, reflecting cautious optimism. However, unresolved issues and ongoing military tensions keep the market volatile. Even if a peace deal is reached, extensive damage to regional energy infrastructure means oil supply recovery will be slow, prolonging economic challenges and emphasizing the urgent need for energy security and diversification.