&imwidth=800&imheight=600&format=webp&quality=medium "Donald Trump pauses Project Freedom, oil dips below $100 before rebound")
Oil prices again fell below $100 per barrel after US President Donald Trump announced a pause in the “Project Freedom” on Wednesday. Trump said that he is halting the “Project Freedom” so he could finalise a deal with Iran, but suggested that his blockade or Iranian port will remain in place. At the time of writing, Brent Crude contract was trading at $103.22 per barrel. Brent crude fell 10 per cent to $98, and WTI dropped over 12 per cent to $89 on May 6 as Trump cited "great progress" toward a "complete and final agreement" with Iran. Iran's Foreign Minister Abbas Araghchi noted that Iran will accept only “a fair and comprehensive agreement”, leaving the idea of negotiations in limbo.
The stock market rallied as major indices like the S&P 500 jumped to a new all-time record, opening up 0.8 per cent and trading near 7,316, and the Sensex surged sharply by 940.73 points or 1.22 per cent to close at 77,958.52, recovering nearly 1,200 points from its intraday low. On May 6, 2026, the Indian rupee (INR) rebounded to 94.59 per US dollar, snapping a five-day losing streak. The crude oil had been falling since Wednesday morning after an Axios report suggested that White House was close to a one-page memorandum of understanding to end the war with Iran. It said the two sides were ready to set a framework for more detailed nuclear talks, citing four sources including two US officials.
However, analysts predict this is another such see-saw occurrence of market volatility. Oil prices fall, the stock market rallies following Trump's announcement and then again markets correct course, and there is a sharp rise in oil prices following failure in negotiations or resumption in attacks in the Persian Gulf. Following the temporary easing, US President Donald Trump told the New York Post on Wednesday that it is "too soon" to consider face-to-face peace talks with Iran or prepare for a signing ceremony in Islamabad, cooling expectations that had sent oil prices sharply lower earlier in the day. Following the news, Brent prices climbed back up to $102, while WTI climbed to $94 on the news.
