Brent crude steady near $95 as Trump hints at progress in US-Iran negotiations amid uncertainty
Brent crude steady near $95 amid US-Iran talks progress.
Oil prices steadied on Friday, June 5, after recording their first decline of the week, as shifting expectations around US–Iran negotiations helped offset ongoing geopolitical risks in the Middle East. Brent crude traded near $95 per barrel after falling 2.8% in the previous session, while West Texas Intermediate (WTI), the US benchmark, hovered below $93 per barrel. The stabilisation followed a volatile trading week driven by conflicting signals from diplomacy and regional security developments.
Market sentiment improved slightly after US President Donald Trump suggested that negotiations with Iran were making progress. His remarks raised hopes that a potential diplomatic breakthrough could eventually ease tensions around energy supply routes, particularly the Strait of Hormuz, a critical chokepoint for global oil shipments.
However, uncertainty remains elevated as regional instability continues. Iran-backed Hezbollah recently rejected a US-supported ceasefire proposal involving Israel and Lebanon, complicating broader diplomatic efforts aimed at de-escalation. Despite this, Trump downplayed the rejection, stating that the group had reached out to discuss a possible cessation of hostilities.
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In separate comments, Trump said he was engaged in what he described as “final negotiations” aimed at ending the conflict involving Iran, though he did not provide additional details. His remarks contributed to market speculation but did not materially alter near-term supply concerns. Despite Thursday’s drop, crude prices remain on track for weekly gains. WTI has risen more than 6% over the week as traders reassess the likelihood and timing of any US–Iran agreement that could impact global supply dynamics.
The Strait of Hormuz continues to be a key focus for energy markets, as it typically handles around one-fifth of global crude oil and liquefied natural gas flows. Any disruption in the region is closely watched by traders due to its potential to significantly affect global energy prices. Even with recent volatility, oil benchmarks remain below earlier highs seen this year, reflecting broader fluctuations in demand expectations and geopolitical risk pricing across global markets.
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