On June 5, 2026, oil prices declined amid growing hopes for de-escalation between the US and Iran. Traders perceived a reduced likelihood of renewed conflict, which contributed to the price drop. Despite this, Brent and WTI crude futures were positioned for their first weekly gains in three weeks, influenced by prior tensions in the Middle East and restricted traffic through the Strait of Hormuz. However, these gains were moderated by unexpected inventory levels and a decrease in demand. The developments reflect the complex interplay of geopolitical factors and market fundamentals affecting oil prices globally, including in the Indian market context where crude oil imports are significant.