Oil Holds Gains as Uncertainty Over US-Iran Talks Persists

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June 2, 2026 — Oil prices held near recent highs on Tuesday after posting strong gains in the previous session, as conflicting signals surrounding U.S.-Iran negotiations and the future of the Strait of Hormuz continued to fuel uncertainty across energy markets.

Oil Prices Remain Near Recent Highs

Brent crude futures edged up 6 cents, or 0.06%, to $95.04 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped 17 cents, or 0.18%, to $91.99 per barrel in early trading.

Both benchmarks had surged more than 5% during the previous session as traders reacted to uncertainty surrounding negotiations between Washington and Tehran.

Conflicting Signals on US-Iran Negotiations.

Market sentiment remained unsettled after reports offered mixed signals about the status of indirect talks between the United States and Iran.

While U.S. President Donald Trump stated that discussions were continuing, Iranian media reported that Tehran had suspended indirect negotiations with Washington. The conflicting reports left investors uncertain about the prospects for a broader agreement.

Trump also said he expects an agreement to extend the ceasefire and reopen the Strait of Hormuz within the coming week, although no formal breakthrough has been announced.

Strait of Hormuz Remains a Key Focus.

The Strait of Hormuz continues to be a major concern for global energy markets due to its importance as a critical shipping route.

Analysts said traders are closely monitoring developments related to tanker traffic, diplomatic negotiations, and any potential threats to shipping activity through the waterway.

Market participants believe the outcome of U.S.-Iran discussions will play a significant role in determining whether the current geopolitical risk premium remains embedded in oil prices.

Middle East Developments Keep Volatility Elevated.

Investors are also watching broader regional developments following reports of a partial ceasefire between Hezbollah and Israel in Lebanon.

Despite signs of limited de-escalation, analysts cautioned that oil markets are likely to remain volatile until clearer evidence emerges regarding a wider peace agreement in the region.

US Oil Exports and Inventory Data in Focus.

Supporting the market, U.S. crude exports reached a record 5.6 million barrels per day in May, reflecting strong demand from refiners in Asia and Europe.

Meanwhile, a Reuters survey indicated that U.S. crude stockpiles likely declined by about 3.6 million barrels during the week ended May 29, suggesting continued strength in demand.

Traders Await Further Clarity.

Oil markets remain highly sensitive to headlines surrounding U.S.-Iran negotiations and regional security developments.

Analysts expect price volatility to continue in the near term as investors assess the likelihood of a ceasefire extension, progress on diplomatic talks, and the future status of the Strait of Hormuz.