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Crude oil prices tumbles over 10% as US reportedly moves closer to Iran war deal
Crude oil prices drops over 10 per cent as report signals progress in US–Iran talks, lifting global equities and boosting risk sentiment.
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Global markets gain momentum after crude oil prices drop over 7.5 per cent on hopes of a potential US–Iran agreement.
Written By: Shweta Birendra Shukla
Updated: Wed, May 06, 2026
05:49 PM IST
05:49 PM IST
New Delhi
Crude Oil Price Today: Global equity markets surged on Wednesday while crude oil prices tumbled more than 7.5 per cent after a report signalled progress towards a potential agreement between the United States and Iran to end the ongoing conflict.
A report by Axios, citing US officials and other sources, said the White House believes it is close to finalising a one-page Memorandum of Understanding with Iran. The proposed agreement is expected to lay the groundwork for broader nuclear negotiations and a possible end to hostilities. The report added that Washington is expecting a response from Tehran within the next 48 hours, marking the closest the two sides have come to a breakthrough in over two months.
Wall Street futures jump on easing tensions
The development triggered a sharp rally in global risk assets. Futures linked to major US indices moved higher, with Dow futures rising more than 300 points and Nasdaq futures gaining over 400 points. Futures for the S&P 500 also advanced, nearing the 7,350 mark, indicating a strong start for US markets.
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Oil prices see steep decline
Oil markets reacted sharply to the possibility of easing geopolitical tensions. WTI Crude Oil dropped over 7 per cent to around $94–95 per barrel, extending losses from the previous session, while Brent Crude fell about 6 per cent to near $103.5 per barrel.
The decline comes even as disruptions continue in the Strait of Hormuz, a critical oil transit route, suggesting that markets are beginning to price in a potential improvement in supply conditions.
Indian markets and rupee strengthen
In India, the Nifty 50 moved higher after the report, crossing the 24,300 mark after struggling earlier in the day. The rally was supported by the sharp drop in crude prices, which typically eases inflation and fiscal concerns for the country.
The Indian rupee also strengthened against the US dollar following the move in global markets.
Gold and silver rise amid volatility
Precious metals also saw sharp moves, with gold and silver rising around 3 per cent and 5 per cent, respectively. The gains reflect heightened volatility across asset classes as investors reposition in response to changing geopolitical expectations.
Diplomatic signals remain tentative
There has been no official confirmation from Iran so far. Iranian Foreign Minister Abbas Araghchi met Chinese Foreign Minister Wang Yi earlier in the day.
US President Donald Trump also pointed to progress, saying there had been “great progress” in talks and announcing a temporary pause in “Project Freedom,” a US-led operation to escort vessels through the Strait of Hormuz.
Supply normalisation may take time
Despite the optimism, analysts caution that a full recovery in oil supply and global shipping flows could take weeks or months. Disruptions in the Persian Gulf have already affected trade, and any sustained improvement will depend on concrete developments in negotiations over the coming days.
PM Modi to chair key meeting on West Asia tensions, crude oil impact on India
Amid ongoing tensions in West Asia, Narendra Modi is set to chair a key meeting today to assess the potential impact on India. The meeting will be attended by Petroleum Minister Hardeep Singh Puri and Finance Minister Nirmala Sitharaman.
Discussions are expected to focus on how the evolving situation in the region could affect crude oil prices, supply dynamics and India’s energy security. The government is also likely to review volatility in global markets and its implications for the domestic economy, and may consider further policy measures if required.
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Shweta Birendra Shukla
Shweta Birendra Shukla
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