LONDON, May 6, 2026, 13:02 BST
- Brent crude slipped under $100 a barrel after a Pakistani source indicated the U.S. and Iran were close to striking a preliminary peace agreement. Reuters
- The navy arm of Iran’s Revolutionary Guards signaled that ships might be able to move through the Strait of Hormuz again, but only under fresh protocols. Details weren’t provided. The Guardian
- Stocks climbed, yet shipping risk remained elevated after CMA CGM reported an attack on one of its ships in the strait Tuesday. Reuters
Oil slid under the $100 mark Wednesday, with global equities moving higher, as President Donald Trump halted a U.S. naval operation in the Strait of Hormuz. That decision opened the door wider for negotiations to end the conflict with Iran. The swing in prices picked up after Tehran indicated ships could once again transit the strait—though the new passage rules remain murky. Reuters
This isn’t some minor channel. About 20% of the world’s energy passes through Hormuz, so when the strait was nearly closed, refineries and fuel buyers started drawing on stockpiles, and traders quickly adjusted prices to reflect a broader supply hit. Reuters
Brent crude slid $10.07, or 9.2%, landing at $99.80 a barrel by 1042 GMT—its first dip below the $100 mark since April 22. U.S. West Texas Intermediate tumbled even harder, down $10.79, or 10.6%, to $91.48. Both benchmarks now track toward their steepest single-day losses in a month. Reuters
The outline on the table isn’t a finished deal yet. A Pakistani mediator familiar with the talks said both camps were nearing a brief, one-page memorandum. Reuters noted that the White House, State Department, and Iranian officials all stayed silent, not responding to requests for comment. Reuters
Axios broke the story, later corroborated by a Pakistani official speaking to Reuters: the draft kicks off a 30-day negotiation window focused on Hormuz, Iran’s nuclear program, and U.S. sanctions. The plan envisions a halt to higher-purity nuclear enrichment and would move toward unfreezing Iranian assets, the report said. Reuters
Trump announced a temporary halt to “Project Freedom,” which is the U.S. operation aimed at escorting ships through the strait, citing ongoing negotiations. He followed up, saying the strait might be “open to all” provided Iran agreed to the deal. If not, he warned, bombing would restart and escalate. The Guardian
Energy stocks weren’t the only ones climbing. The STOXX 600 in Europe added 2.1%. MSCI’s global equity benchmark climbed to a new high, and futures for the S&P 500 were up 0.7%. “Equity investors are jumping on positive-sounding news from the Gulf,” said Chris Turner, head of global markets at ING. Over at Ostrum, Rushil Khanna pointed to Asian tech earnings momentum from AI capital spending, calling it greater than “anything I have seen.” Reuters
Investors are pricing in a “peace dividend” across the board, according to David Morrison, senior market analyst at Trade Nation. Morrison pointed out that reopening Hormuz wouldn’t bring an instant return to regular shipping or trade—restoring those flows could drag on for months. That’s a key distinction, he said: price relief isn’t the same as supply relief. The Guardian
Iran’s Islamic Revolutionary Guard Corps navy has pledged “safe and stable passage” now that, in its words, aggressor threats have ended. Just a day before, Iranian state-backed outlets reported Tehran rolled out a new protocol for ships moving through Hormuz, telling the U.S. Navy to keep clear and instructing commercial vessels to coordinate directly with Iran’s military. The Guardian
Shipping lanes remain hazardous. CMA CGM reported its San Antonio ship came under attack Tuesday in the Strait of Hormuz, leaving crew members injured and the vessel damaged. Earlier in the conflict, the French shipping giant — ranked third worldwide among container carriers — disclosed that 14 of its ships were stuck in the Gulf. Reuters
Peers and operators saw a mixed day. Maersk reported its Farrell Lines vehicle carrier, Alliance Fairfax, managed to exit the Gulf via Hormuz with help from the U.S. military. Crowley-Stena Marine Solutions said the CS Anthem, a chemical tanker, also made it through—both ships flying U.S. flags. Reuters
The risk of talks failing hasn’t gone away. According to Axios, a U.S. official warned that if negotiations break down, Washington might bring back the blockade or restart military strikes. Secretary of State Marco Rubio also insisted any deal must tackle Iran’s stock of highly enriched uranium—material that, with more processing, could be weaponized. Reuters
Diplomatic efforts keep picking up speed. China’s foreign minister Wang Yi pushed for a “comprehensive ceasefire” in talks with Iranian Foreign Minister Abbas Araghchi in Beijing, stressing the need for ongoing dialogue. Over in Pakistan, Prime Minister Shehbaz Sharif expressed gratitude to Trump for halting the Hormuz operation. Apnews
