Oil Prices Fall as Trump Postpones Planned Strike on Iran, Easing Supply Disruption Fears

Kuala Lumpur – Oil prices dropped sharply on Tuesday, May 19, 2026, after U.S. President Donald Trump announced he would postpone a planned military strike on Iran, reducing immediate concerns over further disruptions to global crude supplies through the Strait of Hormuz.

International benchmark Brent crude for July delivery fell more than 2% to trade around $109.15 per barrel. U.S. West Texas Intermediate (WTI) futures declined about 1.3% to $107.28 per barrel.

Trump revealed on Monday that he had delayed the “scheduled attack” on Iran following direct appeals from the leaders of Qatar, Saudi Arabia, and the United Arab Emirates. In comments at a White House event, he stated: “We were getting ready to do a very major attack tomorrow. I put it off for a little while, hopefully maybe forever.”

The decision comes amid a fragile ceasefire in place since April 8. While some shipping activity has resumed through the Strait of Hormuz, flows remain significantly below normal levels. Analysts note that markets continue to price in persistent supply risks in the Middle East.

Market Reaction and Outlook

• The pullback follows weeks of elevated prices driven by tensions in the region.
• ING analysts highlighted that oil markets are still factoring in ongoing disruptions, with inventories and alternative supplies being used to bridge the gap.
• Gulf leaders had urged Washington to avoid escalation that could further threaten energy exports.

President Trump’s latest move provides temporary relief to oil traders, but uncertainty remains high as diplomatic talks with Iran continue. Any renewed escalation could quickly push prices higher again.

This development offers some breathing room for global energy markets, though the underlying geopolitical risks have not disappeared.