Prices fell sharply today Monday May 25 2026, as the United States and Iran approach signing an agreement that could reopen the Strait of Hormuz. Crude Brent fell to 98.36 dollars per barrel, and WTI fell to 91.48 dollars — a decline exceeding 5% for both. This development explains the reasons and its impact on Saudi Arabia.
📊 Today’s oil prices — Monday May 25 2026
| Crude | Current price | Change | Change % |
|---|---|---|---|
| Brent | 98.36 dollars | -5.18 dollars | -5.01% |
| WTI | 91.48 dollars | -5.12 dollars | -5.30% |
| Oman crude | ~96.50 dollars | Estimated | -4.8% |
🔍 Why did prices fall?
The main reason: US-Iran negotiations are moving toward an agreement that includes:
- Reopening Strait of Hormuz — the waterway through which about five percent of global oil and gas production passes
- Ending hostilities between the parties
- Releasing frozen Iranian funds
- Additional talks on Iran’s nuclear program
But US President Donald Trump emphasized that the blockade on the Strait of Hormuz will continue until an official agreement is signed, saying he will not “rush” into the agreement. Naturally — the market is optimistic about the possibility of an agreement but remains cautious.
🇸🇦 Impact of oil price decline on Saudi Arabia
Saudi Arabia, the world’s largest oil exporter, and any sharp price drop affects:
- Government revenues — oil still constitutes a large part of the state budget
- Vision 2030 — makes diversifying income sources more urgent
- Aramco — its profits are directly affected by price declines
But there is a positive aspect: falling oil prices reduce production costs at refineries and local petrochemical companies, and ease global inflationary pressure.
📈 Outlook for the coming months
According to Trading Economics forecasts, Brent is expected to return to around 105.57 dollars by the end of the second quarter, and 120.25 dollars within 12 months. Meanwhile, WTI is expected to return to 98.72 dollars by the end of the quarter and 114.39 dollars within a year.
The forecasts depend heavily on: whether an agreement with Iran will actually be reached, and how quickly production from the region will resume?