Oil Prices Volatile as US-Iran Peace Deal Uncertainty Shakes Markets

On May 20, oil prices plunged 5% as reports of progress in US-Iran talks, including Trump's signals of progress, sent markets into turmoil. WION and Middle East Eye reported the drop, citing the likelihood of a peace deal. However, Reuters noted a rebound the following day, attributing it to uncertainty over the deal and inventory drawdowns. Tehran signaled optimism over negotiations, while Washington remained cautious, leading to conflicting market reactions. On May 21, oil prices jumped as renewed tensions between the US and Iran caused volatility. Reuters reported that oil prices surged, prompting a slip in US stock futures. Bloomberg, however, noted that oil edged up after a sharp decline, reflecting shifting optimism over the potential agreement. The conflicting narratives underscored the uncertainty in global markets as diplomatic talks continued.