Iran in May 2026: the most important developments in economy
In May 2026 Iran's economic news was driven by oil prices and the standoff with the United States over the Strait of Hormuz. Oil traded above $105 a barrel on 1 May and reached $113 on 5 May, then fell sharply on 6 May on hopes of a US-Iran deal. It surged on 8 May after the two sides exchanged fire in the strait, rose again on 11 May when President Trump rejected Iran's response to a ceasefire proposal, and swung near $110 on 18 May as Trump threatened a strike and then called it off. Prices dropped below $100 on 25 May on peace hopes and moved sharply on 28 May after fresh US strikes and reports of progress towards a deal. Oil rose again at month end as a ceasefire remained elusive.
The strait itself became a source of revenue and dispute. Iran launched a system to regulate shipping in early May and on 18 and 19 May set up the Persian Gulf Strait Authority, requiring ships to seek clearance and pay fees. The US threatened sanctions on shipping firms that pay tolls and on 28 May sanctioned the authority, citing its links to the Revolutionary Guards. Iran and Oman discussed a payment system for ships.
Inside Iran, inflation reached its highest rate in nearly three years, at around 50%, and the currency crisis deepened. The US naval blockade stranded crude, and Iran's floating oil stockpile rose by 65%; the Pentagon said the blockade had cost Iran $4.8 billion. China told its refiners to ignore US sanctions, while Washington added sanctions on Iranian oil sales, Chinese firms and currency exchanges. President Pezeshkian acknowledged the severe effects of the blockade. Internet access returned on 26 May after a blackout of about 88 days, and Iran demanded the release of frozen assets.
The war's costs spread abroad. India raised fuel prices several times and lifted its effective gold import tax to 15%, the EU cut growth forecasts, Toyota expected a $5.5 billion hit, and Spirit Airlines shut down.
by WorldBrief & Maksim Micheliov | AI-generated summary
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