Global sentiment provided positive momentum for world oil prices. This development caused oil prices to plunge by more than 5% during trading on Wednesday (May 28, 2026). The decline was triggered by remarks from United States Secretary of State Marco Rubio, who emphasized that Washington still sees significant room for successful negotiations with Iran.

According to CNBC International, West Texas Intermediate (WTI) crude oil futures closed down more than 5% at US$88.68 per barrel. Meanwhile, global benchmark Brent crude also dropped by over 5% and settled at US$94.29 per barrel.

Rubio delivered the statement during a cabinet meeting at the White House. He said discussions between the United States and Iran were showing encouraging progress despite ongoing tensions in the Middle East. Rubio added that President Donald Trump still prioritizes diplomacy, although alternative measures remain available if negotiations fail, likely referring to the possibility of renewed military action.

“Fundamentally, we prefer a negotiated diplomatic solution and we will give every opportunity for it to succeed,” Rubio said, as quoted by CNBC International on Thursday (May 28, 2026).

US President Donald Trump also stressed that Iran would not be allowed to control the Strait of Hormuz under any agreement. The route is considered a crucial global energy trade corridor because roughly 20% of the world’s oil supply passed through the area before the conflict erupted.

“The strait will remain open to everyone. It is international waters, and no one will control it,” Trump stated during the cabinet meeting.

Earlier, Reuters reported that Iranian state television said Tehran had committed to restoring commercial shipping traffic through the Strait of Hormuz to pre-war levels within one month after reaching an agreement with the United States.

Iran reportedly even proposed joint management of shipping traffic with Oman. However, the White House denied reports of any memorandum of understanding and described them as “completely fabricated.”

The oil market has experienced strong volatility in recent days as the United States and Iran balanced between the possibility of a diplomatic agreement and the risk of renewed military escalation. US forces reportedly carried out strikes in southern Iran, which the Pentagon described as defensive measures. In response, Tehran threatened retaliatory action.

Industry experts remain skeptical that oil flows can quickly return to pre-war levels. Although diplomatic prospects have improved, market participants believe the recovery of oil supply distribution will still take considerable time.

The head of Abu Dhabi National Oil Co. (ADNOC), Sultan Ahmed al-Jaber, previously estimated that global oil flows would require at least four months to recover to 80% of normal capacity, even if the conflict ended immediately. According to him, a full recovery would likely only occur in the first or second quarter of 2027.