Global Oil Prices Ease as Uncertainty Surrounds U.S.-Iran Negotiations
Published : 17:06, 2 June 2026
Global oil prices declined on Tuesday after a sharp surge in the previous trading session, as uncertainty surrounding ongoing diplomatic efforts between the United States and Iran prompted investors to adopt a cautious stance.
As of 12:49 PM on June 2, Brent crude futures fell by 53 cents, or 0.56 percent, to $94.45 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude dropped 56 cents, or 0.61 percent, to $91.60 per barrel.
Oil prices had fallen nearly 16 percent during May amid optimism that Washington and Tehran could reach a breakthrough agreement. However, renewed complications in the negotiations triggered a rebound of more than 5 percent in both benchmarks on Monday.
Market sentiment has also been influenced by mixed messages from U.S. President Donald Trump. In an interview with CNBC, Trump suggested that the talks' outcome was not a major concern for him. Shortly afterward, he stated on social media that discussions with Iran were still ongoing. He later told ABC News that he expected an agreement to extend the ceasefire and reopen the Strait of Hormuz within the coming week.
On the other hand, Iran’s Tasnim News Agency reported that Tehran had suspended indirect negotiations with Washington, adding further uncertainty to the market outlook.
Analysts say traders are closely monitoring developments in the U.S.-Iran dialogue, particularly any progress related to the Strait of Hormuz, a critical route for global oil and LNG shipments. Any disruption or reopening of the waterway could significantly impact energy markets worldwide.
Broader geopolitical developments in the Middle East are also affecting oil prices. On Monday, Lebanon announced a partial ceasefire between Hezbollah and Israel, a move that could help ease regional tensions.
Since the outbreak of conflict in the Middle East, shipping activity in the Persian Gulf has faced significant disruptions, tightening global energy supplies and contributing to a substantial rise in oil prices across international markets.
