Oil prices decline amid US-Iran talks over Strait of Hormuz access

Oil prices fell on May 25, 2026, as the United States and Iran entered negotiations regarding the potential reopening of the Strait of Hormuz. The strait has been effectively closed to oil traffic since the conflict began on February 28, impacting approximately 20% of global oil supplies. Reports on price drops vary slightly between sources, with Brent crude quoted between 98.22 and 99 dollars per barrel, and U.S. crude trading between 91.57 and 92 dollars per barrel. The current geopolitical situation has significantly impacted energy costs, with average U.S. gasoline prices rising by approximately 51% since the start of the war to 4.51 dollars per gallon. Analysts at JPMorgan project that if the strait reopens in early June, oil prices may average 97 dollars per barrel for the remainder of 2026. This period, coinciding with the Memorial Day weekend, marked the most expensive holiday travel season in four years. Experts anticipate that elevated energy prices will persist throughout the summer, affecting both travel and broader economic conditions.