Oil prices fell on Wednesday, May 13, 2026, snapping a three-day rally as investors awaited developments around the fragile Middle East ceasefire.
The investors also braced for a high-stakes summit in China between United States President Donald Trump and his Chinese counterpart, President Xi Jinping.
Brent crude futures dropped $1.22, or 1.1%, to $106.55 a barrel at 0410 GMT, while U.S. West Texas Intermediate futures fell $1.16, or 1.1%, to $101.02.
Both benchmarks have largely hovered around or above the $100 per barrel mark since the U.S. and Israel began attacks on Iran at the end of February and Tehran effectively shut the Strait of Hormuz.
A senior market analyst at Phillip Nova, Priyanka Sachdeva, said: “Concerns over supply disruptions and uncertainty surrounding the Middle East are keeping oil prices well supported, even as traders struggle to establish a clear direction.
“The market remains highly reactive to every update from the region, meaning sharp swings are likely to persist. Any further escalation or direct threat to supply flows could quickly revive strong upside momentum in both Brent and WTI.”
Oil prices rose by over 3% on Tuesday, extending earlier gains as hopes for a lasting U.S.-Iran ceasefire faded, dimming prospects of re-opening the strait, through which about a fifth of global oil and liquefied natural gas normally flows, Reuters reported.
Trump said on Tuesday he does not think he will need China’s help to end the war with Iran, even as hopes for a lasting peace deal dwindled and Tehran tightened its grip over the strait.
China is the biggest buyer of Iranian oil despite pressure from the Trump administration. Trump meets his Chinese counterpart Xi in Beijing on Thursday and Friday.
“The length of the disruption and the scale of the supply loss – already more than 1 billion barrels – means oil prices are likely to remain above $80 per barrel for the rest of the year,” Eurasia Group said in a client note.
The war with Iran has started to take its toll on the U.S. economy, the world’s biggest, as higher oil prices lead to more expensive fuels, and economists expect to see second-round effects in the months ahead.
Stay ahead with the latest updates! Join The ConclaveNG on WhatsApp and Telegram for real-time news alerts, breaking stories, and exclusive content delivered straight to your phone. Don’t miss a headline — subscribe now!
