Crude oil futures exhibited a decline on Friday morning following the United States’ indication of “some encouraging signs” regarding potential agreements with Iran.
As of 9:08 AM on Friday, July Brent oil futures were trading at $104.24, reflecting a 0.66 percent decrease, while July crude oil futures on West Texas Intermediate (WTI) were at $97.50, down by 0.51 percent. Furthermore, June crude oil futures on the Multi Commodity Exchange (MCX) saw an increase, trading at ₹9,406 compared to the previous close of ₹9,342, up by 0.69 percent. July futures on MCX were at ₹9,125, rising from ₹9,042, marking a 0.92 percent increase.
U.S. Secretary of State Marco Rubio informed reporters in Washington that negotiations with Iran aimed at resolving the ongoing conflict in West Asia had made progress. He commented on the complexity of the situation, stating, “There’s some good signs. I don’t want to be overly optimistic. So, let’s see what happens over the next few days.”
Rubio also addressed Iran’s proposal regarding a tolling system in the Strait of Hormuz, asserting, “No one in the world is in favour of the tolling system. It can’t happen. It would be unacceptable. It would make a diplomatic deal unfeasible if they were to continue to pursue that. So it’s a threat to the world if they were trying to do that, and it’s completely illegal.”
Although there were reports suggesting that a final draft for a peace deal had been reached between the U.S. and Iran, official confirmations from either party remain absent.
In their Commodities Feed for Friday, ING Think’s Head of Commodities Strategy Warren Patterson, alongside Commodities Strategist Ewa Manthey, indicated that markets continue to seek clarity on a potential agreement. Despite signs of optimism, uncertainty persists. They noted, “This is not the first time a deal seemed close, only for negotiations to break down.”
They further elaborated, stating, “So, there’s a large segment of the market that will be more sceptical about the positive signals we are seeing. While Iran said that the gap between demands has narrowed, there’s still the issue of its uranium enrichment — as well as the uranium stockpile it is sitting on.” The U.S. desires the transfer of this stockpile out of Iran.
Additionally, the management of the Strait of Hormuz poses another challenge. Iran’s advocacy for a formal toll system through the strait is expected to encounter significant opposition, as such a move could jeopardize the free passage of vessels through key global chokepoints. The ongoing uncertainty concerning a potential deal is mirrored in fluctuating oil prices, as the market has responded rapidly to varying headlines. Nonetheless, ICE Brent managed to settle 2.3 percent lower on Thursday, closing below $103 a barrel, its lowest mark since early May.
Published on May 22, 2026.
