Oil prices decline sharply amid easing geopolitical tensions in West Asia
New Delhi, 06 May (H.S.): International crude oil prices witnessed a significant decline following announcements by the United States regarding the conclusion of key naval operations in West Asia, raising hopes of de-escalation in the Iran-US conflict.
Brent crude dropped by 11% to $97.08 per barrel, while West Texas Intermediate (WTI) crude fell 13.31% to $88.66 per barrel in global markets.
US Secretary of State Marco Rubio stated that Operation Epic Fury, launched jointly by the US and Israel against Iran 66 days ago, has concluded after achieving its objectives. He added that the likelihood of renewed conflict in the region has reduced significantly.
US President Donald Trump also announced that efforts to escort merchant ships through the Strait of Hormuz under Project Freedom would be temporarily halted, although the naval blockade in the region would continue.
The easing of tensions led to immediate softening in crude prices. Brent crude opened $2.12 lower at $107.75 per barrel and briefly rose to $108.91 before falling sharply to $97.08 following the announcement. It later recovered slightly and was trading at $102.60 per barrel as of 6 PM IST.
Similarly, WTI crude opened $2.40 lower at $99.87 per barrel, climbed to $102.70, and then dropped to $88.66 before recovering to $92.63 per barrel by evening.
Market experts believe that even if tensions in West Asia ease further and the Strait of Hormuz fully reopens, a steep decline in crude prices may not occur immediately.
Tarakeshwar Nath Vaishnav, CEO of TNV Financial Services, said that while peace in the region could bring crude prices down to $80–85 per barrel, a return to pre-conflict levels of $60–70 per barrel may take time due to extensive damage to oil infrastructure caused during the conflict.
He noted that Israeli strikes had significantly impacted Iran’s oil infrastructure, while retaliatory attacks by Iran on Gulf nations also disrupted production capacities. As a result, global crude supply is expected to remain constrained until infrastructure is restored to pre-conflict levels.
(With inputs from H.S.) Inputs & Images courtesy: Hindusthan Samachar (H.S.)
Edited by: Dikshita Bollu
Last Updated on: Wednesday, May 6, 2026 11:55 pm by Bollu Dikshitha | Published by: Bollu Dikshitha on Wednesday, May 6, 2026 11:55 pm | News Categories: India
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