Oil Falls as Trump Extends Deadline for Iran Deal

Crude oil fell to around $81 per barrel on Tuesday, touching its lowest level in more than a week, as optimism over a potential diplomatic breakthrough between the US and Iran eased concerns about supply disruptions. President Donald Trump said Washington was engaged in “good talks” with Tehran and that there was a “good chance” of reaching a resolution after pausing military strikes to give negotiations more time. He cautioned, however, that US attacks would resume if diplomacy failed, while Iran also warned it would retaliate should talks collapse. Oman has reportedly proposed a joint regional mechanism to manage shipping through the Strait of Hormuz, including a voluntary fee system. Despite the improving diplomatic outlook, geopolitical risks remain elevated. Saudi Arabia said it intercepted drones launched from Iraq targeting petroleum facilities, blaming Iran-backed groups, while Yemen’s Houthi rebels claimed responsibility for an attack on Saudi Arabia’s East-West oil pipeline.

Crude oil fell to around $81 per barrel on Tuesday, marking a third consecutive session of losses after President Donald Trump said the US was engaged in "good talks" with Iran aimed at ending the Middle East conflict, fueling optimism that normal oil flows from the region could resume. Trump reportedly said he chose to suspend strikes on Iran to give negotiations another chance. The US quietly halted attacks on the Islamic Republic late Friday following nearly two weeks of fighting, while Tehran also ceased retaliatory strikes against US bases in neighboring countries. Meanwhile, Iranian and Omani negotiators met over the weekend in an effort to secure an agreement to restore shipping through the strategically important Strait of Hormuz. Elsewhere, supply conditions also improved as crude exports resumed at the Caspian Pipeline Consortium terminal on Russia's Black Sea coast, a major outlet for Kazakh oil that had recently been disrupted by Ukrainian drone attacks.

Crude oil extended losses and fell toward $82 per barrel on Monday, its lowest level in a week, as optimism grew that the conflict in the Middle East could soon ease. President Trump said the US was holding "good talks" with Iran and that there was a chance of reaching a deal, but warned that US strikes would resume if negotiations failed. The US paused its military strikes on Iran on Friday, following nearly two weeks of hostilities and Tehran said it had suspended its retaliatory military operations in response and entered talks with Oman regarding navigation through Hormuz. Supply conditions also improved after crude loadings resumed at the Caspian Pipeline Consortium terminal on Russia's Black Sea coast, a key export route for Kazakh oil that had recently been disrupted by Ukrainian drone attacks. Meanwhile, Houthi militants claimed to have targeted Saudi Aramco-linked facilities in Jizan and Yanbu, although neither the Saudi government nor Aramco confirmed it.