Mumbai | May 5,2026 | SKY LINK TIMES
Oil Prices Drop Nearly 3pc:
Global crude oil prices slipped nearly 3 per cent on Monday after US President Donald Trump signalled possible relief for vessels stranded in the Strait of Hormuz. However, ongoing tensions between Washington and Tehran kept prices elevated above the $100 per barrel mark.
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Oil Prices Decline Amid Relief Signals
International benchmark Brent crude dropped by 66 cents (0.61 per cent) to $107.51 per barrel, while US West Texas Intermediate (WTI) fell sharply by $2.83 (2.77 per cent) to $99.11 per barrel.
In India, crude oil futures on the Multi Commodity Exchange (MCX) were trading at Rs 9,621, down Rs 44 or 0.45 per cent from the previous close.
The decline came after Trump indicated that the United States would take steps to ensure safe passage of ships through the Strait of Hormuz, a critical global oil transit route.
Hormuz Tensions and Global Impact
In a statement on Truth Social, Trump said the US is working to help vessels move freely through the restricted waterway. Several countries, including neutral nations, have reportedly sought US assistance to clear stranded ships.
The Strait of Hormuz is a vital chokepoint through which a significant portion of the world’s oil supply passes. Any disruption in this region directly impacts global energy markets.
US-Iran Talks Still Unresolved
Despite the easing in prices, the absence of a breakthrough in US-Iran negotiations continues to weigh on the market. Talks between the two nations carried on over the weekend, with both sides reviewing proposals.
While the US is pushing for a renewed nuclear agreement, Iran has suggested postponing nuclear discussions until the ongoing conflict subsides. Tehran has also proposed easing restrictions on Gulf shipping as part of a broader de-escalation strategy.
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OPEC+ Output Increase Offers Limited Relief
Meanwhile, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) group announced that seven member countries would increase oil production by 188,000 barrels per day in June. This marks the third consecutive monthly supply hike.
However, analysts believe the additional output may not significantly ease market pressures in the short term due to persistent disruptions linked to geopolitical tensions in West Asia.
Equity Markets React Positively
Global equity markets responded positively to the easing concerns. In India, benchmark indices Sensex and Nifty rose around 1 per cent during morning trade.
Asian markets also witnessed gains, with indices such as Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s Kospi rising by up to 4 per cent.
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