Oil slides nearly 2% after Trump delays planned strike on Iran

Fiona Craig

Tue, May 19, 2026 at 6:30 AM EDT 2 min read

Oil prices declined on Tuesday after U.S. President Donald Trump said he had postponed a planned military strike on Iran to allow more time for negotiations aimed at ending the conflict in the Middle East.

Trump said in a social media post on Monday that a military attack on Iran scheduled for Tuesday had been put on hold while diplomatic efforts continued. He added that the United States remained prepared to resume military action if negotiations fail to produce an agreement.

Brent crude futures for July delivery dropped $2.02, or 1.8%, to $110.08 per barrel by 0802 GMT. U.S. West Texas Intermediate crude for June delivery, which expires on Tuesday, fell 47 cents, or 0.4%, to $108.19 a barrel. The more actively traded July WTI contract declined $1.15, or 1.1%, to $103.23.

“While Trump’s signal has eased some immediate pressure, the fundamental risks persist …. The market is now watching whether Trump’s comments represent a genuine shift toward de-escalation or just a tactical pause,” said Tim Waterer, chief market analyst at KCM Trade.

During the previous trading session, both Brent and WTI reached their highest levels since May 5 and April 30 respectively.

The ongoing conflict in the Middle East has effectively shut down the Strait of Hormuz, a strategically vital shipping route that normally handles around one-fifth of global oil and liquefied natural gas supplies. According to the International Energy Agency, the disruption represents the largest oil supply shock currently facing global markets.

Iran’s latest peace proposal to the United States reportedly includes ending military operations across all fronts, including Lebanon, the withdrawal of U.S. troops from areas near Iran and compensation for damage caused during the conflict, according to state media reports on Tuesday.

Separately, U.S. Treasury Secretary Scott Bessent extended a sanctions waiver for another 30 days, allowing what he described as “energy-vulnerable” countries to continue importing Russian seaborne oil.

In the United States, data from the Energy Department showed that a record 9.9 million barrels were withdrawn from the Strategic Petroleum Reserve last week, reducing stockpiles to roughly 374 million barrels, their lowest level since July 2024.

Meanwhile, analysts expect official Energy Information Administration data due on Wednesday to show that U.S. crude inventories declined by around 3.4 million barrels in the week ending May 15.

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