20th May 2026
USA has eased some sanctions today and today’s oil price is very marginally down. Using data from the Financial Times, Trading Economics, and Reuters here is a brief summary of the position.
Why Oil Prices Are Moving: A Simple Explanation
Oil prices today are being pulled in two directions:
(1) the United States easing some sanctions, and
(2) the continuing disruption of Middle East oil supplies.
The UK has not eased sanctions.
Who eased sanctions? — The United States, not the UK
Recent reporting confirms that it is the US, not the UK, that has temporarily eased certain restrictions on Russian oil.
The Financial Times notes that the US has “eased Russian oil sanctions in a bid to contain the Iran price surge” .
The UK, by contrast, has not relaxed sanctions and continues to add new measures.
Why the US did this
The US move is a short‑term stabiliser designed to prevent a global oil shortage while the Strait of Hormuz remains severely disrupted by the Iran war.
The International Energy Agency says Hormuz normally carries around one‑fifth of global oil supplies .
With that route effectively closed, the US allowed more Russian barrels to reach the market to stop prices spiralling even higher.
What effect is this having on oil prices?
It has softened the spike — but only slightly.
Oil prices have fallen a little because of the US easing, but they remain very high due to the ongoing war and supply disruption.
Reuters‑linked reporting shows:
Brent crude fell 45 cents (0.4%) to $110.83 on 20 May 2026.
The Financial Times lists Brent at $110.82, down 0.41% today.
Trading Economics reports Brent at $110.20, down 0.97% today.
All three sources agree:
➡ Oil is slightly down today, but still extremely expensive.
Why prices remain high
Even with sanctions eased, the market is still dealing with:
Severe supply losses from the Gulf
Attacks on energy infrastructure
Record inventory drawdowns (Business Standard reports shortages as high as 12 million barrels per day at peak disruption)
Uncertainty over peace talks between the US and Iran
Analysts warn that even if a peace deal is reached, oil supply will not quickly return to pre‑war levels .
Today’s Oil Price (20 May 2026)
Brent Crude (global benchmark):
$110.83 (Times of India / Reuters)
$110.82 (Financial Times)
$110.20 (Trading Economics)
Consensus:
➡ Brent is trading around $110–$111 per barrel today.
This is 70% higher than a year ago according to Trading Economics data .
In Simple Terms: What’s Really Happening
The US eased sanctions to stop oil prices exploding even further.
The UK did not ease sanctions.
Oil prices dipped slightly because more Russian oil can now reach the market.
But the Iran war and the closure of the Strait of Hormuz are still causing massive supply shortages, keeping prices high.
Today’s price of about $110 reflects a market that is still extremely tight.