Oil just had its worst month in six years. Brent crude fell nearly 19% in May, settling around $92-$93 per barrel, a retreat not seen since March 2020, when COVID-19 was busy rewriting every assumption about global demand.
West Texas Intermediate didn’t fare much better, dropping roughly 16.5% and trading near $87 per barrel by late May.
What drove the collapse
The sharp decline traces back to growing optimism around a potential 60-day US-Iran ceasefire extension. For context, the US-Iran conflict had been the dominant force pushing oil prices higher throughout early 2026, with Brent exceeding $114-$119 at its peak.
The Strait of Hormuz, which handles approximately 20% of global oil flows, was effectively closed during heightened military tensions beginning February 28, 2026.
