By Boluwatife Oshadiya | June 3, 2026
Key Points
- Brent crude fell below $95 per barrel after gaining more than 5% in the previous session
- Donald Trump said negotiations with Iran remain active despite reports of a suspension
- Investors continue monitoring risks to shipping through the Strait of Hormuz
Main Story
Global oil prices eased on Tuesday after a sharp rally in the previous session, as investors weighed conflicting reports regarding ongoing negotiations between the United States and Iran.
Brent crude declined 0.94% to $94.08 per barrel, while US benchmark West Texas Intermediate (WTI) fell 1.01% to $91.22 per barrel.
Market sentiment shifted after Iran’s semi-official Tasnim news agency reported that Tehran had suspended indirect talks with Washington through regional mediators in response to recent Israeli military actions in Lebanon.
However, US President Donald Trump sought to reassure markets, stating that discussions with Iran were continuing and that an agreement concerning regional security and maritime navigation through the Strait of Hormuz could be reached within a week.
The Strait of Hormuz remains one of the world’s most critical energy corridors, handling roughly one-fifth of global oil supplies. Any disruption to shipping through the waterway typically triggers immediate volatility in energy markets.
Analysts note that oil prices remain highly sensitive to geopolitical developments in the Middle East, particularly amid ongoing tensions involving Iran, Israel and Hezbollah.
Although reports suggested a possible de-escalation between Israel and Hezbollah, contradictory statements from regional leaders have kept uncertainty elevated and maintained a geopolitical risk premium in crude markets.
What’s Being Said
“Looking good, looking good,” US President Donald Trump told ABC News when asked about the status of negotiations with Iran.
“There had been a minor glitch,” Trump said, referring to Iranian concerns over Israeli military actions in Lebanon.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu stated: “Our position remains unchanged. At the same time, the army will continue to operate as planned in southern Lebanon.”
What’s Next
- Investors will closely monitor developments in US-Iran negotiations over the coming week
- Markets remain focused on the security of shipping routes through the Strait of Hormuz
- Any escalation involving Israel, Hezbollah or Iran could trigger renewed volatility in global energy prices
Bottom Line
The Bottom Line: Oil markets remain hostage to geopolitical headlines. While diplomatic progress between Washington and Tehran could ease supply concerns, uncertainty surrounding regional conflicts continues to keep energy markets on edge.
