Oil pushes toward $106, recovers lost ground

May 21, 2026 (MLN): Oil prices climbed modestly on Thursday, recovering a portion of steep losses as markets kept a close watch on ongoing diplomatic negotiations between Washington and Tehran.

Currently, Brent crude futures are up by $0.88, or 0.84%, to $105.9 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are up by 1.6%, to $99.83 per barrel by [12:21 pm] PST.

The rebound followed a sharp selloff the previous day, when both major oil benchmarks tumbled to their lowest levels in over a week.

The slide came after President Donald Trump signaled that a deal with Iran was nearing completion, while simultaneously warning of further military action should Tehran refuse to agree to terms, according to Reuters.

The prolonged disruption to supply from the Middle East has sent shockwaves through global energy markets.

Nations have been forced to draw down both commercial and strategic oil reserves at an accelerated pace to compensate for the shortfall, a trend that is raising mounting concerns about the long-term sustainability of those stockpiles.

The outlook for oil prices hinges largely on whether U.S.-Iran negotiations yield a concrete agreement, or whether tensions escalate further.

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