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London / New York / Vienna, May 23, 2026 — The fifth round of US-Iran peace negotiations concluded in Rome on Friday with the now-familiar formula: described as “constructive,” agreed to continue, and producing nothing that would reopen the Strait of Hormuz by a single nautical mile. Brent crude climbed 3 percent on May 22
London / New York / Vienna, May 23, 2026 — The fifth round of US-Iran peace negotiations concluded in Rome on Friday with the now-familiar formula: described as “constructive,” agreed to continue, and producing nothing that would reopen the Strait of Hormuz by a single nautical mile. Brent crude climbed 3 percent on May 22 to $104.52 a barrel. WTI rose to $98.27. The market’s message was unambiguous — and it was not optimism.
It was mistrust. Specific, historically grounded, analyst-backed mistrust of a diplomatic process that has now collapsed five times, produced a “breakthrough” that nobody in the oil trading community believes in, and left the world’s most important energy chokepoint functionally closed for 84 consecutive days.
“Oil moving around like crazy” in what Citigroup commodity analyst Max Layton called a “hope-and-fear dance” — and right now, fear is leading.
Secretary of State Marco Rubio returned from Rome citing “some good signs” and “slight progress” in US-Iran peace negotiations. He confirmed that Operation Epic Fury — the joint US-Israel military campaign launched February 28 — is “concluded.” He also flatly rejected Iran’s proposed tolling system for the Strait of Hormuz, calling it “not acceptable.”
That last statement captures the entire negotiating impasse in four words. Iran established its Persian Gulf Strait Authority in May, requiring all transiting vessels to complete 40-plus question declarations and pay tolls exceeding $1 million per ship — payments some vessels have already made in Chinese yuan. For Tehran, Strait sovereignty is, as Iranian authorities stated explicitly, “on the level of an atomic bomb” in strategic importance. For Trump — who said “open, free, and without toll charges” is his non-negotiable position — the tolling regime is a red line he cannot yield on domestically.
Two red lines. One strait. No movement.
The nuclear dimension is equally frozen. The US demands Iran dismantle its entire uranium enrichment programme or transfer stockpiles abroad — halting enrichment for a minimum of 20 years. Iran’s Supreme Leader has ordered Iran’s stockpile of approximately 400-460 kg of uranium enriched to 60% — one to two weeks from weapons-grade — to remain inside Iran. Iran’s position: the right to enrich is non-negotiable, full stop. Tehran has described US demands as “unreasonable,” while Trump branded Iran’s 14-point proposal “TOTALLY UNACCEPTABLE” on May 11.
As the Carnegie Endowment’s May analysis concluded: “Two wars later, Iran’s nuclear question is still on the table.”
The oil prices rise on May 22 was not a reaction to bad news. It was a reaction to good news that the market didn’t trust — a pattern that has defined every week of the US-Iran peace negotiations since the April 8 ceasefire.
The history is instructive. Oil fell more than 7 percent on May 6 when Trump paused Operation Project Freedom, citing “great progress” toward a deal. It rebounded within days as the deal failed to materialise. On May 19, oil fell again on Trump’s announcement of postponed strikes, then recovered. Now, with the Rome round complete and Rubio’s “slight progress” failing to produce framework language, the fear leg of the “hope-and-fear dance” has reasserted itself.
Goldman Sachs analyst Daan Struyven delivered the clearest institutional verdict. In what Yahoo Finance confirmed as Goldman’s fourth upward revision to its oil forecast since the war began, Struyven warned: “Inventories could fall to lowest levels since tracking began in 2018, increasing risk of sharp, non-linear price spikes.” Goldman’s Q4 2026 Brent forecast is now $90 a barrel — but that assumes a deal. Without one, the bank has modelled a persistent closure scenario where Brent averages $120 in Q3 and $115 in Q4.
Citigroup’s Layton put the market psychology precisely: “It’s very difficult to predict if Iran is going to do a deal — very difficult to predict with this new leadership in Iran.” Citi maintains a $120 Brent target for the next zero-to-three months and upgraded quarterly forecasts to $110, $95, $80 for Q2, Q3, and Q4 — while acknowledging 50 percent probability that the Strait of Hormuz reopens by end of May. That May window is closing. As Bloomberg reported, Citi sees the market “moving around like crazy” precisely because nobody can price the deal with confidence.
Morgan Stanley’s warning is the starkest of all: “Oil buffers could run out before Hormuz reopens.” In the extreme scenario, Dated Brent could reach $150 per barrel if the Strait remains closed beyond the point where strategic reserves and alternative routing can compensate.
The IEA’s May Oil Market Report, as the agency confirmed, shows global inventories drew 129 million barrels in March and 117 million barrels in April — historic depletion rates driven by the Strait of Hormuz closure and the simultaneous shutdown of Gulf production capacity. OECD commercial inventories have dropped to 2,774 million barrels. The IEA forecasts global inventories will fall at 8.5 million barrels per day on average in Q2 2026 — the steepest draws in the history of the oil crisis measurement.
Against that backdrop, the Strait of Hormuz carries freight that cannot be easily replaced. Pre-conflict, approximately 3,000 vessels transited monthly. As of early May, only 167 commercial-size vessels were operating in the area, with 146 of them running dark — transponders off — a maritime risk indicator that tells insurers, underwriters, and oil traders everything they need to know about confidence in the waterway’s safety.
The US-Iran peace negotiations have produced five rounds, multiple ceasefire extensions, three Pakistani shuttle missions, Omani facilitation, Qatari LNG tanker gestures, Saudi airbase denials, a Senate war powers revolt, and Trump’s admission that he is “in no hurry.” What they have not produced is a single ship transiting the Strait of Hormuz without paying Iran a million dollars or running its transponder dark.
Until that changes, oil prices rise on peace talk days are not perverse. They are rational.
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