Oil prices dropped on 19 May after US President Donald Trump announced he was calling off a planned military strike on Iran to support negotiations for resolving the Middle East conflict.

At 08:25 GMT, Brent futures for July had decreased by $1.73, or 1.5%, to $110.37 per barrel (bbl), The Caspian Post reports, citing Reuters.

Meanwhile, US West Texas Intermediate (WTI) crude for June delivery, expiring on the same day, fell by $0.63, or 0.60%, to $108.03/bbl.

The July contract, which is more actively traded, declined by $0.82, or 0.8%, to $103.56/bbl.

In the prior session, Brent and WTI reached their highest points since 5 May and 30 April, respectively.

In the US, data revealed a drawdown of 9.9 million barrels (mbbl) from the Strategic Petroleum Reserve, reducing stockpiles to approximately 374mbbl, the lowest level since July 2024.

The conflict in the Middle East has led to the closure of the Strait of Hormuz, a strategic passage that usually transports around 20% of global oil and liquefied natural gas (LNG).

The disruption is considered one of the largest in the oil supply sector, according to the International Energy Agency.

On Monday, Trump announced on social media that he was delaying a planned military strike on Iran set for Tuesday, pending ongoing negotiation efforts. He noted that the US was prepared to resume military action if an agreement was not achieved.

Meanwhile, Iran proposed a peace plan to the US, which involves halting hostilities on all fronts, including Lebanon, the withdrawal of US forces from areas near Iran and compensation for war damages, as reported by state media.

On another front, US Treasury Secretary Scott Bessent granted a 30-day extension on a sanctions waiver, allowing “energy-vulnerable” nations to purchase Russian seaborne oil, reported Reuters.

Bessent stated that the extension, which follows the expiration of a previous waiver, aims to support countries struggling to secure Gulf oil shipments due to hostilities involving the US, Israel and Iran.

The decision on the waiver extension was reportedly urged by nations experiencing difficulty in obtaining oil supplies due to the blockage of the Strait of Hormuz.