Oil prices today: Crude drops below $98 after US halts Hormuz operation
Published May 06, 2026
Brent crude oil prices drop $98 a barrel for the first time in two weeks.
This marks approximately 11% amid increasing optimism regarding the peace deal between the United States and Iran.
The dramatic drop followed U.S. President Donald Trump’s announcement that he has decided to pause “Project Freedom” temporarily.
The project was a naval operation aimed at guiding vessels through the Strait of Hormuz.
Trump also stated that there's “great progress" toward a “complete and final agreement” with Tehran.
Threatening them, he also warned that: “If they don’t agree, the bombing starts.”
The price of Brent crude oil reached 97.48 per barrel before falling slightly to around 100. U.S. West Texas Intermediate plunged more than 10% to $90.74.
The global stock markets surged following this announcement, with the South Korean Kospi gaining almost 8% and other European stock indices gaining more than 2%. Nonetheless, experts believe that stability will be hard to sustain.
The Pakistani government, which is facilitating negotiations, approved of this move by President Trump, while China’s foreign minister held discussions with the Iranian counterpart in Beijing for a complete ceasefire in the region.
