WTI Oil Tumbles to $87.36 on US-Iran Ceasefire Hopes

Oil prices plunged sharply through May 29-30 as optimism over a potential 60-day US-Iran ceasefire and Strait of Hormuz reopening slashed geopolitical risk premia. After spiking nearly 2% to $90.36 on May 28 following fresh US strikes on Iranian targets, benchmarks reversed on May 29 diplomatic signals from Treasury Secretary Bessent and President Trump. WTI fell over 9% and Brent about 11% for the week—the largest weekly decline in seven weeks—while May losses reached 16-19%. Despite the selloff, prices remain well above pre-conflict levels near $60, with IEA and Goldman Sachs noting severe ongoing supply shortfalls of up to 14.5 million bpd.