Oil Prices Ease as Trump Says Negotiation with Iran Continues
Oil prices edged lower on Tuesday after surging more than 5% in the previous session, as conflicting signals from Washington and Tehran over the future of US-Iran negotiations prompted investors to reassess geopolitical risks in the Middle East.
The international benchmark Brent crude traded at $94.08 per barrel, down about 0.94% from the previous close of $94.98. US benchmark West Texas Intermediate (WTI) decreased about 1.01% to $91.22 per barrel, compared with $92.16 in the previous session.
Markets remained cautious after Iran’s semi-official Tasnim news agency reported that Tehran had suspended indirect talks with Washington through mediators in protest of Israeli attacks in Lebanon.
Meanwhile, US President Donald Trump said negotiations were continuing and that an agreement to extend the ceasefire and reopen the Strait of Hormuz could be reached within a week.
Analysts said oil prices continue to be driven by developments in the US-Iran negotiations, concerns over potential disruptions to shipping through the Strait of Hormuz, and broader regional tensions.
While reports of a limited de-escalation between Israel and Hezbollah offered some relief to markets, uncertainty surrounding the talks kept a geopolitical risk premium embedded in crude prices.
Speaking by phone to ABC News on Monday, Trump said he expected an agreement with Iran to be reached “over the next week.”
“Looking good, looking good,” Trump said, adding there had been a minor “glitch” after Iranian officials expressed anger over Israel’s attacks in Lebanon.
Trump later said Israel and Hezbollah had reached an understanding to halt attacks against each other and that he had received assurances Israel would not send troops into Beirut.
However, Israeli Prime Minister Benjamin Netanyahu said Monday that Israeli forces would continue operations in southern Lebanon despite reports of a ceasefire.
“Our position remains unchanged. At the same time, the army will continue to operate as planned in southern Lebanon,” he said.
Meanwhile, Iran’s Khatam al-Anbiya Central Headquarters warned residents of northern Israel on Monday to leave the area if Israel followed through on threats to expand attacks on Beirut and its southern suburbs, according to remarks carried by Iran’s state-run news agency IRNA. Dangote Refinery Ends Nigeria’s Era of Fuel Import Dependence, Boosts GDP, FX Earnings — EIU
