OIL Market Update
26 May 2026 • 00:44 GMT
Oil prices have retreated from recent highs, with Brent crude falling just below $100 per barrel to around $94.50. This marks a 5.1% drop from its 3-month average of $99.56, despite ongoing concerns about supply disruptions due to Middle East tensions. The conflict, including concerns over Iran’s actions and shipping threats through the Strait of Hormuz, pushed prices above $101 earlier this week, but the market has now pulled back as fears of further escalation stabilize somewhat.
The sharp move lower in oil has affected currencies of major oil exporters. For instance, the Canadian dollar (CAD) and Norwegian krone (NOK) have both edged lower against the US dollar. Meanwhile, the US dollar itself remains firm, supported by safe-haven flows amid geopolitical uncertainties. Overall, oil remains volatile, and traders should watch for potential rebounds if geopolitical tensions escalate again or supply issues intensify.