Oil Falls to $108 as Iran Sends Peace Proposal via Pakistan — But Trump Says He Is “Not Satisfied” With the Offer

● Anamika Dey, editor

WORLD • ENERGY • US-IRAN WAR • OIL MARKETS

Brent crude fell from its $126 high to $108 a barrel after Iran sent an updated peace proposal to US mediators via Pakistan — prompting expectations of a possible breakthrough in the 68-day-old war. But President Trump quickly dampened expectations: “Iran wants to make a deal, but I’m not satisfied with it.” The ceasefire is still holding. The Strait of Hormuz remains largely shut. Gas prices are beginning to ease but Goldman Sachs warns of product shortages in India, South Africa and Thailand.

May 6, 2026 • By World Affairs Desk, techsunnews.com • 7 min read • Sources: CNBC, Goldman Sachs, Reuters, Chevron CEO

OIL MARKET DASHBOARD — May 6, 2026

[AD UNIT 1 — Place leaderboard or in-article ad here]

From $126 to $108 — what changed in 72 hours

Just last week, Brent crude hit $126.41 — a four-year high — as US Central Command briefed President Trump on potential military strike plans against Iran. The world braced for an escalation that would have pushed oil toward Goldman Sachs’ $140–$150 target range. What happened instead was a ceasefire that held — barely — and an Iranian peace proposal that emerged via Pakistan.

The sequence of events was fast. Iran launched drones and missiles at the United Arab Emirates earlier this week — a move that sent oil back up 4% on Monday as markets feared the fragile ceasefire was collapsing. Then Defence Secretary Pete Hegseth stepped in, confirming the ceasefire remained in place. Brent fell 4% to $109.87. Then on Friday, Iran sent an updated peace proposal to US mediators via Pakistan, and Brent fell again to $108.17 and WTI hit $101.94 — the lowest levels since before the $126 peak. For American drivers, national average gasoline prices are beginning to ease from their $4.30/gallon high.

“Iran wants to make a deal, but I’m not satisfied with it.”
— President Donald Trump, White House, May 2, 2026

What Iran proposed — and why Trump rejected it

The details of Iran’s updated peace proposal have not been made public. Pakistani officials confirmed to mediators that the proposal was delivered to Washington — but its contents remain classified. What is known from Trump’s public response is that Iran’s offer falls short of what the US wants. Previous reports have indicated the US demands include a verified halt to uranium enrichment, full clearance of Hormuz mines and a verifiable drawdown of Iranian naval capabilities in the Persian Gulf. Iran has consistently refused to accept conditions it characterises as surrender terms.

[AD UNIT 2 — Place mid-article ad here]

Goldman Sachs warning — India is among the highest-risk countries

Goldman Sachs wrote in a Monday note that global oil inventories of 101 days of demand could fall to 98 days by the end of May. While that remains above emergency thresholds, the bank flagged sharper shortages in specific products and regions. Petrochemical feedstocks such as naphtha and LPG, as well as jet fuel, are being depleted rapidly. The countries Goldman Sachs flagged as highest risk: India, South Africa, Thailand and Taiwan.

For India, which imports roughly 60% of its crude through the Strait of Hormuz in normal times, the combination of restricted supply and elevated prices continues to create serious economic pressure. Brent at $108 — though lower than $126 — is still 50% higher than pre-war levels of $72. Every week the Strait of Hormuz remains effectively closed compounds India’s current account deficit, weakens the rupee and adds to inflationary pressure on fuel and food.

The ceasefire paradox — it’s holding but Hormuz is still shut

A key contradiction in the current situation is the coexistence of a ceasefire and a de facto blockade. The US and Iran are technically not at war — no major combat operations have occurred since the ceasefire began. But the Strait of Hormuz remains largely shut. The mines laid by Iran are still in place. Most commercial shipping companies are still avoiding the strait. Iraq is offering buyers steep discounts on crude — but only if they are willing to transit Hormuz, which most are not. The ceasefire has paused the shooting but has not restored the flow of oil.

WHAT DO YOU THINK? IRAN HAS SENT A PEACE PROPOSAL BUT TRUMP SAYS HE IS “NOT SATISFIED.” OIL IS AT $108 AND GAS PRICES ARE STARTING TO EASE — SHOULD TRUMP ACCEPT A DEAL OR HOLD OUT FOR MORE CONCESSIONS? DROP YOUR OPINION IN THE COMMENTS! 👇

[AD UNIT 3 — Place ad before FAQ section]

Frequently asked questions

Why did oil drop from $126 to $108?

Oil fell after Defence Secretary Hegseth confirmed the US-Iran ceasefire remains in place despite Iranian attacks on the UAE, and then fell further after Iran sent an updated peace proposal via Pakistan mediators. Markets interpreted both developments as reducing the risk of full-scale military escalation. However the drop is partial — Brent at $108 is still 50% above its pre-war level of $72.

Is the US-Iran ceasefire still holding?

Yes — as of May 6, 2026. General Dan Caine confirmed that Iran’s attacks on the UAE fall “below the threshold of restarting major combat operations.” Hegseth said “the ceasefire is not over.” However the ceasefire is described as fragile, with tensions remaining elevated and both sides maintaining military readiness.

Will the Strait of Hormuz reopen soon?

Not immediately. Even if a peace deal is reached, the Pentagon has warned Congress that clearing the GPS-guided mines Iran laid in the strait could take up to 6 months. Most commercial shipping companies are awaiting stable ceasefire assurances from both sides before returning to the strait. Iraq is offering crude discounts to buyers willing to transit Hormuz — but very few are accepting.

SOURCES — 7 verified portals

1. CNBC — Oil prices fall after Hegseth says Iran ceasefire remains in place (May 5, 2026)

2. CNBC — Oil prices fall after Iran sends peace proposal to Pakistan mediators (May 1, 2026)

3. techsunnews.com — Oil Hits $126 as US Military Briefs Trump on Iran Strike Plans

4. techsunnews.com — Hormuz Mines Could Take 6 Months to Clear — Pentagon Warns Congress

5. techsunnews.com — The Strait That Broke the World Economy — Why Hormuz Matters

6. techsunnews.com — US Iran Blockade Day 3: Maritime Trade Completely Halted

7. techsunnews.com — Trump Orders Navy to ‘Shoot and Kill’ Iranian Mine-Laying Boats