By Elena Torres | June 1, 2026
West Texas Intermediate crude fell 1.5% to $94.20 a barrel on Monday as diplomatic sources reported meaningful progress in US-Iran ceasefire negotiations brokered by Oman. A ceasefire would remove one of the largest risk premiums currently baked into crude prices.
Brent crude settled at $98.80, retreating from the $102 level it touched the previous week when Middle East hostilities escalated. The premium for Brent over WTI narrowed to $4.60, suggesting the supply disruption fears were more pronounced in European markets.
The International Energy Agency estimates that a full de-escalation could remove $5 to $8 per barrel from crude prices by reducing insurance and shipping costs through the Strait of Hormuz, through which roughly 20 million barrels pass daily.
Energy stocks took a hit. ExxonMobil fell 1.8%. Chevron dropped 1.5%. The XLE energy ETF declined 1.6%, making energy the only sector in the red on an otherwise strong day for equities.
OPEC+ delegates are scheduled to meet later this week to discuss production targets for July. Lower Iranian tensions could strengthen the case for maintaining current output levels rather than cutting.
