Oil prices slipped below the $100-per-barrel mark once again after US President Donald Trump announced a pause in “Project Freedom” on Wednesday. Trump said he was halting the initiative to finalise a deal with Iran, although he indicated that the blockade on an Iranian port would continue to remain in place. At the time of writing, Brent Crude was trading at $103.22 per barrel.
Brent crude had dropped 10 per cent to $98, while WTI crude declined more than 12 per cent to $89 on May 6 after Trump cited “great progress” toward a “complete and final agreement” with Iran. Iran’s Foreign Minister Abbas Araghchi said Iran would accept only “a fair and comprehensive agreement”, leaving the prospects of negotiations uncertain.
Global equity markets rallied following the developments. The S&P 500 surged to a fresh all-time high, opening 0.8 per cent higher and trading near 7,316. In India, the Sensex climbed 940.73 points, or 1.22 per cent, to close at 77,958.52 after recovering nearly 1,200 points from its intraday low.
On May 6, 2026, the Indian rupee rebounded to 94.59 against the US dollar, ending a five-day losing streak. Crude oil prices had been declining since Wednesday morning after an Axios report stated that the White House was close to reaching a one-page memorandum of understanding aimed at ending the war with Iran. The report, citing four sources including two US officials, said both sides were prepared to establish a framework for detailed nuclear negotiations.
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Despite the temporary easing, analysts cautioned that the sharp swings reflected continued market volatility. Oil prices initially fell and stock markets rallied after Trump’s announcement, but markets later reversed course as concerns resurfaced over the possibility of failed negotiations or renewed attacks in the Persian Gulf.
Adding to the uncertainty, Trump told the New York Post on Wednesday that it was “too soon” to consider face-to-face peace talks with Iran or prepare for a signing ceremony in Islamabad. The remarks cooled expectations that had earlier pushed oil prices sharply lower. Following the comments, Brent crude climbed back to $102 per barrel, while WTI rose to $94.
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