Oil prices fell by the widest margin in more than a month on Wednesday after President Trump said the US is in the “final stages” of reaching a deal with Iran and several tankers moved to transit the Strait of Hormuz.
Futures on Brent crude (BZ=F), the international benchmark, lost roughly 4.6% to trade slightly above $106 per barrel, while those on US West Texas Intermediate crude (CL=F) fell 4.3% to trade below $100.
Trump’s comments to reporters on Wednesday suggesting the US was nearing a deal with Iran came after the president called off military action he said had been slotted for the previous day.
“We’re in the final stages of Iran — we’ll see what happens,” Trump said Wednesday, as reported by Agence France-Presse. “Either have a deal or we’re going to do some things that are a little bit nasty, but hopefully that won’t happen.”
Read more: How oil price shocks ripple through your wallet, from gas to groceries
He added, “We’re going to give this one shot. I’m in no hurry. Ideally I’d like to see few people killed, as opposed to a lot. We can do it either way.”
Vice President JD Vance had said Tuesday that the US had “made a lot of progress” in negotiations with Iran, adding, “We think the Iranians want to make a deal.”
In Iran, the regime warned on Wednesday of “crushing blows in places you do not expect” throughout the Middle East if the US were to resume military action against the Islamic Republic, according to the state-owned Tasnim news agency.
“If aggression against Iran is repeated, the regional war that had been promised will this time extend beyond the region,” the Islamic Revolutionary Guard Corps said on Wednesday.
The comments from the IRGC come after President Trump said he had canceled a large wave of strikes against Iran planned for Tuesday at the request of Gulf state leaders, who he said had assured him a deal was near.
Vessels sail through the Strait of Hormuz, Musandam, Oman, on May 20, 2026. (Reuters/Stringer) · REUTERS / REUTERS
Putting additional downward pressure on oil prices on Wednesday were signs that some traffic through the Strait of Hormuz, the center of the conflict and the world’s most critical energy chokepoint, may be resuming.
Early in the morning, a South Korean supertanker carrying Kuwaiti crude oil appeared to cross through the strait, according to ship tracking data reviewed by Yahoo Finance, marking the first such passage of a vessel from the nation.
The South Korean vessel trailed behind two Chinese supertankers also making the crossing. If all three carriers are confirmed to have made the voyage successfully, it would mark one of the highest-volume days for oil movement through the strait since the war began in late February.
That said, the three vessels appeared to follow a route designated by Tehran as the controlled lane, suggesting some measure of control by the Iranian regime, said Arsenio Longo, founder of maritime intelligence firm HUAX. Reports suggested that some countries, including China, may be cutting deals directly with Iran to guarantee safe passage for their vessels.
“Tanker movement is returning, but it appears to be returning through a route environment shaped by Iranian clearance, route discipline and political acceptability,” Longo said, adding that crossings may come down to which nationalities, owners, and cargoes are deemed acceptable by the regime.
“The current tanker movements do not end the Hormuz crisis. They show what the new operating pattern may look like,” Longo said.
Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.conley@yahooinc.com.
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