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May 14, 2026
- media@moneyinfocus.news
WTI crude oil futures fell nearly 6% on Wednesday to around $96 per barrel, extending losses from the previous session as investors reacted to growing expectations of a possible diplomatic resolution between the United States and Iran.
The decline follows a 3.9% drop recorded a day earlier, reflecting a broader easing of geopolitical risk premiums that had recently pushed energy prices sharply higher.
According to Iranian officials, Tehran is currently reviewing a U.S.-backed proposal aimed at ending the two-month conflict. A formal response is expected to be delivered through Pakistani mediators once internal deliberations are completed.
President Donald Trump stated that a potential agreement could lead to the reopening of the Strait of Hormuz, one of the world’s most strategically important energy corridors. At the same time, Trump warned that military strikes could intensify if Iran fails to comply with the proposed terms.
Earlier reports indicated that Washington had already presented a preliminary framework for ending the conflict, with financial markets increasingly expecting a response within days.
The White House also announced a temporary suspension of “Project Freedom,” a naval operation designed to escort commercial vessels through the Strait of Hormuz amid escalating tensions.
The decision signaled growing confidence that negotiations may reduce immediate risks to shipping routes and oil flows across the Persian Gulf.
Still, disruptions remain significant. Approximately 23,000 seafarers are reportedly stranded in the region, while elevated shipping costs and logistical bottlenecks continue to pressure global trade and energy demand.
Despite the sharp decline in oil prices, analysts caution that supply chains are unlikely to normalize immediately. Shipping flows through the region may take weeks to fully stabilize, even in the event of a diplomatic breakthrough.
The recent pullback in crude prices reflects a reassessment of geopolitical risk rather than a structural change in global supply-demand fundamentals. Markets remain highly sensitive to developments surrounding negotiations, military activity and maritime security in the region.
Lower oil prices, however, could help ease inflation concerns globally, particularly as central banks continue balancing economic growth risks with elevated borrowing costs.
