Oil prices fall a second day after Trump hints at possible Iran deal

Oil prices fell for a second consecutive day after U.S. President Donald Trump indicated a possible peace deal with Iran, prompting traders to pare the ‘war premium’ that had supported crude. Both Brent and West Texas Intermediate futures moved lower on renewed hopes that constrained Middle East flows could resume.

Market data showed Brent July futures down $1.52 (about 1.38%) at $108.35 per barrel and U.S. WTI June futures off $1.50 (around 1.47%) at $100.77, according to Reuters reporting. Trump had said he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing progress toward a comprehensive agreement, while maintaining naval measures around Iranian ports.

The move reverberated through energy markets as participants weighed both fundamental and geopolitical signals. U.S. stock draws — Reuters-cited sources reported a crude inventory decline of about 8.1 million barrels in the latest week — underscored that physical tightness remains, even as headline risk recedes. That combination has left the market exposed to sharp reactions when diplomatic updates arrive.

In a broader context, closures and disruptions around the Strait of Hormuz had earlier pushed Brent to multi-year highs by pricing in the risk of lost barrels. The current headlines have reduced that immediate panic, but traders note that only a verifiable, sustained reopening of passage and a return of actual cargo flows would materially alter the supply backdrop. Until then, price volatility tied to developments in diplomatic talks is likely to persist.

Analysts say the near-term outlook hinges on concrete developments: resumed, verifiable shipments through the Strait would be bearish for prices, while any collapse of talks or fresh kinetic activity would quickly revive the war premium. For now, market participants favor event-driven positioning and tight risk controls, anticipating further headline-driven swings rather than a steady trend.