Oil prices tumble as Iran conflict enters new phase with military pause and focus on diplomacy


After nearly two weeks of U.S. airstrikes, the war in Iran has entered a new phase as both sides paused attacks over the weekend, and diplomatic efforts gained momentum.

It’s not clear why the U.S. temporarily halted strikes, but the lull comes as Oman says talks with Iran to reopen the Strait of Hormuz are making progress.

QR code for SAN app download

Download the Straight Arrow app today to get the stories that matter free from manipulation, bias or agenda.™

Point phone camera here

Hundreds of vessels remain backed up in the critical shipping lane, but oil prices have dropped significantly since the countries halted attacks.

On Friday, oil was sitting around $90 a barrel. That number has now dropped to around $82 as of early Monday.

Diplomatic talks

U.S. Ambassador to the United Nations Mike Waltz told NBC News the president is giving diplomatic talks “some space” as discussions continue.

“What the president is doing right now, as we’ve seen all along, is giving some talks some space,” Waltz said. “Talks are ongoing. They’re happening at every level from the more technical aspect of it all the way to the highest levels, of course, within both the Iranian government and the U.S. government.”

Iran’s foreign ministry is pushing back, however, saying Tehran is not seeking talks with the United States. Rather, it is just discussing the Strait of Hormuz with Oman.

“The negotiations that we have, and which may genuinely be subject to different interpretations, are the negotiations we have with Oman,” Iranian Foreign Ministry spokesperson Esmaeil Baghaei said. “They are focused on creating the necessary arrangements regarding the Strait of Hormuz.”

Conflict in the Middle East continues

Meanwhile, Yemen’s Iran-backed Houthis attacked Saudi oil facilities along the Red Sea over the weekend.

And Iran is threatening retaliation after accusing Ukraine of targeting one of its ships in the Caspian Sea. Iranian officials say at least one person was killed.

“Zelenskyy has attacked an Iranian commercial vessel, killing a sailor,” Iran’s Foreign Minister Abbas Araghchi said on X. “A blatant UN Charter violation done at Israel’s behest to drag Europe into its war.”

Ukraine says it targeted “cargo vessels under international sanctions” used to transport military cargo between Iran and Russia.

Round out your reading

Tags: , , , , , ,

Straight Arrow
Fear No Fact.

Don't just take our word for it.


Center-rated reporting

According to media bias experts at AllSides

AllSides Center-rated reporting May 2026

Transparent and credible

Awarded a perfect reliability rating from NewsGuard

100/100

Welcome back to trustworthy journalism.

Find out more

Why this story matters

A pause in U.S.-Iran strikes has brought oil prices down from $90 to roughly $82 a barrel, but hundreds of vessels remain backed up in the Strait of Hormuz, a chokepoint for global energy supply.

Oil prices have dropped

Crude fell from around $90 to roughly $82 a barrel as of early Monday, according to the article, following the halt in strikes.

Shipping lane still blocked

Hundreds of vessels remain backed up in the Strait of Hormuz, a critical route for oil and goods moving through global supply chains.

Talks remain contested

The U.S. describes ongoing diplomatic discussions, but Iran's foreign ministry says Tehran is only negotiating with Oman, not the United States directly.

Straight Arrow
Fear No Fact.

Don't just take our word for it.


Center-rated reporting

According to media bias experts at AllSides

AllSides Center-rated reporting May 2026

Transparent and credible

Awarded a perfect reliability rating from NewsGuard

100/100

Welcome back to trustworthy journalism.

Find out more