Crude Oil Prices Fall But Still Above 100: US & Iran Peace Talks Likely; What India Said On New Attacks In UAE

Crude oil prices plunged by nearly 2% on May 6; however, they still continued to trade above the 100 mark, which isn't calming for the global economy as the energy crisis pertains. In a latest development, both the US and Iran exchanged fresh crossfire in the Persian Gulf yesterday, dragging the UAE into the collateral damage when one of its oil facilities in Fujairah was hit. Amidst this, India too faced a blow when three Indians were injured in the new dispute.

India condemned the attack and demanded an end to the hostilities at Hormuz that have impacted innocent civilians and infrastructure.

On the other hand, crude oil prices extended their second consecutive day of losses as US President Donald Trump declared a temporary pause in US assistance to shipping vessels at Hormuz as they planned to listen to the new peace proposal of Iran. However, the US naval blockade of Hormuz continues to be in place against Iranian ships.

Crude Oil Prices Today:

US WTI Crude Oil price dropped by over 2% but still traded above $100 per barrel, while Brent Crude plunged by 2% and traded near $108 per barrel.

According to Kedia Advisory, crude oil prices declined as markets balanced escalating geopolitical risks against the possibility that recent tensions may be part of ongoing negotiations. Renewed clashes between the United States and Iran in the Strait of Hormuz, including attacks on vessels and defensive responses, initially heightened supply disruption concerns.

US-Iran Peace Talks Hope Emerges

Through his Truth Social handle, US President Donald Trump said, "Based on the request of Pakistan and other Countries, the tremendous Military Success that we have had during the Campaign against the Country of Iran, and additionally, the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran, we have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalized and signed."

His statement comes after both the US and Iran carried out a series of attacks against each other at Hormuz on Monday. The US military reported that they fought Iran's attack to secure and escort two of the American-flagged ships via Hormuz. The US said the vessels transited successfully.

Trump, via his Truth Social post, revealed that the US military shot down seven small Boats or, as they like to call them, 'fast' Boats.

Iran Attacks UAE:

On May 4th, UAE's Defence Ministry reported that they have engaged 12 ballistic missiles, 3 cruise missiles, and 4 UAV's. This resulted in 3 moderate injuries.

UAE ministry added that since the beginning of the blatant Iranian attacks on the United Arab Emirates, the air defenses have engaged a total of 549 ballistic missiles, 29 cruise missiles, and 2,260 UAV's.

This has led to the total number of injuries to 227 in UAE which includes multiple nationalities, including Emirati, Egyptian, Sudanese, Ethiopian, Filipino, Pakistani, Iranian, Indian, Bangladeshi, Sri Lankan, Azerbaijani, Yemeni, Ugandan, Eritrean, Lebanese, Afghan, Bahraini, Comorian, Turkish, Iraqi, Nepali, Nigerian, Omani, Jordanian, Palestinian, Ghanaian, Indonesian, Swedish, Tunisian, Moroccan, and Russian.

Among the civilian fatalities, the number has reached to 10 which includes nationalities of Pakistani, Nepali, Bangladeshi, Palestinian, Indian, and Egyptian.

Meanwhile, three Indians were reported to have died amidst Iran's latest attack at UAE's oil facility in Fujairah. The ministry said, "Tuesday's strike marked the second consecutive day of renewed Iranian attacks on the US-Israel ally after Iranian drones on Monday set tankers ablaze and triggered a fire at the UAE's largest oil storage facility."

India has condemned these attacks. The Ministry of External Affairs issued a statement, demanding that these hostilities end immediately. Meanwhile, Iran has denied the attack on Fujairah and US has downplayed the matter.

India's Statement On Attack On Fujairah:

"The attack on Fujairah that resulted in injury to three Indian nationals is unacceptable. We call for immediate cessation of these hostilities and the targeting of civilian infrastructure and innocent civilians," MEA said in its statement.

It added, "India continues to stand for dialogue and diplomacy to deal with the situation, so that peace and stability may be restored across West Asia. We also call for free and unimpeded navigation and commerce through the Strait of Hormuz in keeping with international law. India stands ready to support all efforts for a peaceful resolution of issues."

However, the spokesperson of the Islamic Revolution Guards Corps (IRGC) said, "The armed forces of the Islamic Republic of Iran have not carried out any missile or drone operations against the UAE in the past few days, and if any action had been taken, we would have announced it firmly and clearly. Therefore, the report of that country's Ministry of Defence is absolutely denied and is devoid of any truth."

Meanwhile, US Defense Secretary Pete Hegseth and Dan Caine said the fragile ceasefire remains in place despite the latest exchanges of fire.