Oil holds above $101 amid Iran, U.S. uncertainty

May 07, 2026 (MLN): Global oil prices remained steady on Thursday amid volatile trading, as investors weighed fresh developments in the Middle East and growing uncertainty surrounding U.S.-Iran tensions.

Currently, Brent crude futures are down by $7.91, or 7.2%, to $101.96 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are up by $0.66 or 0.69%, to $95.74 per barrel by [9:09 am] PST.

Market sentiment remained cautious despite reports suggesting Washington and Tehran are moving closer to a potential agreement aimed at ending the ongoing conflict.

Concerns resurfaced after U.S. President Donald Trump warned that Iran could face intensified military action if a peace deal is not finalized, CNBC reported.

In a post on Truth Social on Wednesday, President Trump said the U.S. military campaign, dubbed “Operation Epic Fury,” would come to an end only if Iran accepts the terms already discussed in negotiations, this caused oil to fall drastically from $107 per barrel to $102.

He added that a successful agreement would lead to the lifting of the U.S. naval blockade around Iranian ports in the Gulf of Oman, allowing the Strait of Hormuz to remain open for all shipping traffic, including Iranian vessels.

However, President Trump also warned that failure to secure a deal would trigger a new wave of attacks “at a much higher level and intensity than before,” heightening fears that negotiations remain fragile.

The remarks followed an Axios report claiming the U.S. and Iran are close to finalizing a brief 14-point memorandum of understanding designed to halt the war and create a framework for broader diplomatic talks.

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