Oil slips as US-Iran talks keep Strait of Hormuz reopening in play
What's next: Traders are watching for a deal within a week as tanker traffic stays far below prewar levels and keeps a risk premium in crude.
Oil prices fell as traders weighed uneven signals from Washington and Tehran over extending a ceasefire and reopening the Strait of Hormuz, a route for about one-fifth of global oil and gas supply. Brent settled at $92.05 a barrel on May 29, capping an 11% weekly drop, then traded at $94.23 on June 2 after a sharp rebound the previous session. US West Texas Intermediate ended May 29 at $87.36 and later traded at $91.31. Donald Trump said he expected a deal over the next week, while Tasnim reported Iran had suspended indirect talks with Washington. Shipping through Hormuz remains a fraction of prewar levels, and Iran has kept tight control over Gulf traffic since the war began.