Oil Dips to $104 as Tankers Resume Hormuz Transit and Trump Signals Quick Iran Deal

Oil prices eased for a second day on May 20, with WTI near $104 and Brent at $110.83, after President Trump said the US would end the Iran conflict 'very quickly.' The move followed weeks of extreme volatility triggered by the late-February Strait of Hormuz blockade that severed 10-12 million bpd of flows. Supply tightened further as Chinese refiners cut May runs to 8.4 million bpd, US SPR stocks posted a record 9.9 million barrel draw, and global inventories fell sharply. Recent signs of de-escalation, including two supertankers exiting the strait bound for China and India exploring direct Gulf loadings, have tempered immediate risk premia while analysts continue to warn of potential physical shortages within weeks.