Oil prices fall sharply in May as traders anticipate a U.S.-Iran deal despite major supply disruptions.
Brent Crude is set to decline 19% in May, marking its steepest monthly drop since 2020. The slump reflects market bets on an extended ceasefire and a potential U.S.-Iran agreement, overshadowing significant supply disruptions.
Front-month Brent futures traded flat at $93.84 per barrel early Friday, while WTI Crude dipped 0.12% to $88.94. The decline contrasts with earlier expectations of tighter supply, driven by geopolitical developments rather than fundamentals.
Traders remain focused on diplomatic progress, which could further ease supply concerns and pressure prices in the near term.