Oil Slips After Trump Says US-Iran Talks Are Ongoing
- 2nd June 2026
- 11:00 AM
- 3 min read
Summary
Oil prices fell on Tuesday following the previous session's sharp gains, as markets remained cautious about the status of US-Iran negotiations. Brent crude and WTI both slipped after Trump confirmed talks with Iran were continuing, contradicting earlier reports that Tehran had suspended indirect negotiations with Washington.Mumbai | June 2, 2026
Oil prices retreated on Tuesday after Brent crude futures lost 53 cents, or 0.56%, to $94.45 a barrel at 0649 GMT, while US West Texas Intermediate fell 56 cents, or 0.61%, to $91.60 a barrel. Both benchmarks had risen more than 5% in the previous session, having posted a monthly loss of more than 16% in May on hopes of a peace deal between the US and Iran.
What Did Trump Say About US-Iran Talks?
In an interview with CNBC on Monday, Trump said he did not mind if the talks were over. Shortly after, he issued a social media post saying talks with Iran were continuing. He told ABC News that he expected a deal to extend the ceasefire and reopen the Strait of Hormuz “over the next week.”
Tasnim news agency had earlier reported that Tehran suspended indirect negotiations with Washington, creating conflicting signals that kept oil markets on edge.
What Is Happening at the Strait of Hormuz?
Iran has effectively halted nearly all non-Iranian shipping into and out of the Gulf since the war began, choking off approximately a fifth of global oil and liquefied natural gas flows. Lebanon announced a partial ceasefire between Hezbollah and Israel on Monday, representing a limited de-escalation of the broader conflict with Iran.
US crude exports climbed to a record 5.6 million barrels per day in May as the Middle East crisis pushed up demand for American oil from Asian and European refiners, according to ship tracking estimates.
What Are US Crude Stockpiles Showing?
A preliminary poll released on Monday showed US crude stockpiles are expected to have fallen by approximately 3.6 million barrels in the week ended May 29, extending the prior week’s draw. Distillate and gasoline inventories are also expected to have declined.
Shipping executives meeting in Athens on Monday said any peace deal between the US and Iran would need to offer clear rules allowing vessels to resume normal operations via the Strait of Hormuz.
Outlook
Oil price direction remains tied to the status of US-Iran negotiations. Trump’s expectation of a deal within the next week, if realised, could determine whether the current risk premium in oil prices holds or begins to unwind.
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