Oil Dips as Iran Makes New Offer to End War


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Oil prices eased Friday (5/1) on news that Iran had 
revised its offer to end the Middle East conflict, after the United States 
rejected Tehran's prior demand that it lift the blockade on Iranian ports and 
defer nuclear talks for both sides to achieve a deal.

   By 9:40 a.m. ET, NYMEX WTI crude for June delivery was down $3.06, or nearly 
3%, to $102.01 bbl. The front-month ICE Brent crude for July slid $1.29, or 
1.2%, to $109.11 bbl.

   Downstream, NYMEX ULSD futures for June delivery slid $0.0804 to $4.0005 
gallon. NYMEX RBOB futures for June eased $0.0163 to $3.5987 gallon.

   The U.S. Dollar Index dropped 0.119 points to 97.8 against a basket of 
foreign currencies.

   Crude and diesel futures extended declines from the prior session after 
media reports, citing Iranian diplomatic sources, said Tehran had submitted a 
new proposal to Pakistani mediators in Islamabad on Thursday night, aimed at 
ending the more than two-month long Middle East conflict.

   The specific contents of the proposal remained unclear though as Tehran 
doubled down in recent days on its blockade of the Strait of Hormuz, while 
Washington signaled no compromise in its embargo on activity in and out of 
Iranian ports.

   The conflict has surpassed the two-month mark since the first U.S.-Israeli 
airstrikes against Iran on February 27. The Hormuz used to handle 140 ships 
daily and 20 million bpd of petroleum liquids that made up a fifth of global 
supply prior to the war.

   In energy corporate news, oil majors ExxonMobil and Chevron both reported 
lower earnings for the first quarter of 2026.

   Exxon said net profit fell 45% year-year in the first quarter to $4.2 
billion, weighed down by disruptions from the Middle East conflict among other 
factors, despite high oil prices and record production in Guyana.

   Chevron reported a 37% drop in earnings from a year ago to $2.21 billion on 
production and trade losses linked to the Iran war.

    




(c) Copyright 2026 DTN, LLC. All rights reserved.