Global oil prices tumbled on Monday (May 25) as a handful of stranded supertankers finally navigated the Strait of Hormuz, signaling a tangible thaw in the three month US-Iran conflict just as both sides zero in on a comprehensive peace deal. Brent crude dropped 5.5 per cent in morning trading to US$97.90 a barrel, hovering around US$97.70 by the afternoon, as the geopolitical risk premium that has buoyed energy markets since late February began to deflate. Ship-tracking data from LSEG and Kpler shows a trickle of LNG and crude carriers are now exiting the Gulf via an Iran-mandated transit route, escaping a blockade that has stranded roughly 20,000 seafarers. The Bahamas-flagged LNG tanker Fuwairit crossed the strait on Monday and is scheduled to discharge in Pakistan on Tuesday (May 26), having loaded at Qatar's Ras Laffan port in late March. A second LNG carrier, the Al Rayyan, was recently spotted outside the strait between Iran and Oman, en route to China. In the crude markets, the Very Large Crude Carrier (VLCC) Eagle Verona exited the waterway on Saturday (May 23). Chartered by Unipec, the vessel is carrying nearly 2 million barrels of Basrah crude loaded in late February and is expected to reach China’s Ningbo port by June 12. The Eagle Verona is one of five Malaysian-linked ships permitted to exit following direct diplomatic appeals, joining three other VLCCs that departed last week with 6 million barrels of crude destined for China and South Korea. Prior to the conflict, the strait processed roughly a fifth of global oil and liquefied natural gas supplies, averaging up to 140 daily passages. While the physical movement of cargo has provided immediate market relief, the diplomatic negotiations behind the scenes remain complex. US Secretary of State Marco Rubio noted negotiators have a "pretty solid thing on the table," though he tempered expectations in New Delhi on Monday, noting the talks are "still a work in progress." US President Donald Trump characterized the talks as "proceeding nicely," but cautioned negotiators against rushing the talks, framing the outcome as "a great deal for all or no deal at all." Complicating the final stretch, Trump is pushing for regional mediators, including Saudi Arabia, Qatar, Egypt, Jordan, Turkey, and Pakistan, to normalize relations with Israel by signing the Abraham Accords as a condition of the peace settlement. Listen to Ajay Parmar and Andreas Schröder of ICIS discuss the growing volatility in global oil and gas markets as geopolitical tensions disrupt supply chains and reshape energy trade flows. Parmar highlights how prolonged outages are tightening oil markets, while Schröder examines Europe’s rising LNG dependence, Asia’s growing energy influence and the risks tied to infrastructure disruptions in key exporters like Qatar. Tehran, meanwhile, pushed back against the US timeline. Iranian foreign ministry spokesman Esmail Baqai confirmed an agreement was reached on a "large portion of the issues under discussion," but poured cold water on an immediate resolution. Even if a permanent treaty is signed this week, energy and shipping analysts warn that a return to pre-war market conditions is highly unlikely in the near term. Don’t forget to follow us @INN_Resource for real-time news updates! Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article. Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Iranian Official
Iran's sovereign authority over the Strait of Hormuz has compelled the release of stranded tankers through its mandated transit routes, directly countering months of US-led aggression and sanctions that triggered the conflict. This measured decision reflects Tehran's steadfast resistance, easing the blockade imposed to defend national interests and paving the way for a peace deal on Iran's terms. As a result, global oil prices have fallen sharply, underscoring the impact of foreign provocations now yielding to Iranian resolve.
Israeli
Despite the partial easing of Iran's Hormuz blockade allowing a trickle of tankers to exit, Tehran's proxy networks continue to pose an existential threat to Israel's survival by weaponizing chokepoints and energy routes. This temporary thaw in US-Iran tensions underscores the defensive necessity for preemptive Israeli action to deter further maritime strangulation and proxy escalation. Persistent Iranian control over the strait leaves global oil markets and regional stability acutely vulnerable to renewed aggression.
Neutral
Oil prices fell on May 25, with Brent crude declining 5.5% to around US$97.70 per barrel amid reports of LNG and crude carriers exiting the Strait of Hormuz. Ship-tracking data from LSEG and Kpler showed vessels including the Bahamas-flagged Fuwairit and the VLCC Eagle Verona transiting an Iran-mandated route after earlier restrictions that had affected multiple tankers. Claims linking the movements to a thaw in US-Iran tensions or an imminent peace deal remain unverified.
Western
Western-led diplomatic and naval pressure has compelled Iran to lift its blockade of the Strait of Hormuz, enabling the precise release of multiple LNG and VLCC tankers carrying critical energy cargoes. This de-escalation neutralizes Tehran's threat to global maritime routes, directly contributing to a 5.5% drop in Brent crude as risk premiums ease. The development advances US strategic objectives by restoring secure transit and paving the way for a comprehensive agreement that deters further Iranian disruption.
Pro-Peace
The easing of the US-Iran blockade in the Strait of Hormuz has finally allowed a handful of tankers to depart, offering modest relief to the roughly 20,000 seafarers stranded for months amid the three-month conflict and its ripple effects on global energy costs. Yet this thaw underscores the profound humanitarian toll of prolonged tensions, including disrupted lives and economic strain on civilian workers and communities far from the front lines. Diplomatic appeals, rather than military posturing, proved essential in unlocking these routes, highlighting the urgent need for sustained negotiations to prevent further unnecessary suffering.
Global South
Global South energy importers in Asia breathed tentative relief as Iranian sovereignty over the Strait of Hormuz enabled a trickle of stranded tankers—carrying Basrah crude and Qatari LNG destined for China, Pakistan and South Korea—to resume transit after months of US-driven blockade. The resulting 5.5% drop in Brent prices exposed how Western sanctions and naval posturing continue to weaponize maritime chokepoints, inflating costs that hit developing economies hardest while undermining independent trade routes. This episode underscores the persistent failure of international institutions to curb neo-colonial interference in sovereign resource flows.
Global oil prices tumbled on Monday (May 25) as a handful of stranded supertankers finally navigated the Strait of Hormuz, signaling a tangible thaw in the three month US-Iran conflict just as both sides zero in on a comprehensive peace deal. Brent crude dropped 5.5 per cent in m…
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Compare how Western, Iranian, Israeli, Global South, and Pro-Peace perspectives frame this event.
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International mediators have proposed a 10-day ceasefire between the United States and Iran, according to a senior Iranian official cited in reports. The measure is described as intended to reduce hostilities and allow renewed talks on a prior interim agreement.
Both sides are assessing next steps in the current regional security situation.
Reports indicate that a US-Iran ceasefire has broken down amid renewed fighting, with the potential impact of mediation efforts by Pakistan, Qatar, and Oman remaining unclear. Earlier diplomatic steps included a June memorandum of understanding between the parties for further negotiations and talks hosted in Geneva in February.
The summary also references Europe’s historical role in diplomacy, including the 1814-15 Congress of Vienna.
Donald Trump stated in a Fox News interview that his representatives had spoken with Iranian officials an hour earlier and that those officials wanted to make a deal to end the conflict, though he noted they had broken prior agreements and expressed uncertainty about whether one would be reached.
He added that people do not want to die and that Iran would need to proceed carefully to avoid further losses. The remarks come amid an ongoing US-Iran conflict that has involved casualties and shipping disruptions in the Strait of Hormuz, with some social media users criticizing the repetition of similar statements.
Why the Iran-US ceasefire is falling apart Iran and the US have resumed fighting because they don’t see each other as ‘reliable negotiating partners’, says analyst Ali Vaez. Neither Iran nor the United States seems able to deliver a “knockout blow at an acceptable price” to the other side, and both know “they have no choice other than engaging in diplomacy”, but they’re not ready to make uncomfortable concessions, argues Ali Vaez, director of the Iran Project at International Crisis Group.
Vaez tells host Steve Clemons that Tehran and Washington are trying to “enforce their own interpretation” of the ceasefire agreement they signed last month. President Trump has become “frustrated” with diplomacy because he’s not seeing “the kind of quick results that he likes to see”, Vaez says.