Oil prices dip after Trump confirms ongoing Iran talks

Oil prices moved lower on Tuesday after recording strong gains in the previous trading session. Investors remained focused on developments in talks between the United States and Iran.

US President Donald Trump said negotiations with Iran were continuing. However, Iran’s Tasnim news agency reported that Tehran had suspended indirect talks with Washington, creating uncertainty in the market.

Brent crude oil fell by 75 cents to $94.23 per barrel, while US West Texas Intermediate (WTI) dropped 85 cents to $91.31 per barrel.

Despite the latest decline, both oil benchmarks had gained more than 5% in the previous session. Oil prices had also fallen more than 16% during May on hopes that a peace agreement could be reached.

Market analysts said traders are closely watching any progress or setbacks in the US-Iran negotiations. Statements from both countries and developments around the Strait of Hormuz continue to influence oil prices.

Donald Trump said in a separate interview that he would not mind if the talks ended. However, he later stated on social media that discussions were still ongoing and expressed hope for a deal to extend the ceasefire and reopen the Strait of Hormuz soon.

Meanwhile, Lebanon announced a partial ceasefire between Hezbollah and Israel, raising hopes of reduced tensions in the region.

Analysts believe oil prices will likely remain volatile until there is clear progress toward a peace agreement in the Middle East.

The conflict has disrupted shipping through the Strait of Hormuz, a key route that handles about one-fifth of global oil and gas supplies. Concerns over supply disruptions have continued to support oil prices.

At the same time, US crude oil exports reached a record 5.6 million barrels per day in May as demand increased from buyers in Asia and Europe.

Market participants are also waiting for new US inventory data, with expectations that crude oil stockpiles declined during the past week.