Oil Prices Slide as Trump Hints at Breakthrough in Iran Negotiations

Global oil prices fell sharply on Friday after U.S. President Donald Trump indicated that negotiations with Iran were nearing a breakthrough, easing fears of a prolonged disruption to global energy supplies and boosting hopes of stability in the Middle East.

The decline saw Brent crude oil fall to about $87 per barrel, while West Texas Intermediate (WTI) traded around $84.50 per barrel. The drop came after several days of gains driven by escalating tensions between Washington and Tehran, which had pushed oil prices above the $90-per-barrel mark earlier in the week.

Speaking at the White House, Trump expressed confidence that diplomatic efforts were yielding results and suggested that a formal agreement with Iran could be reached in the coming days.

“We have essentially ended the war with Iran,” Trump said, adding that discussions were progressing toward a settlement that could significantly reduce tensions across the region.

The remarks marked a dramatic shift from previous statements by the U.S. president, who had earlier threatened military action against Iran and suggested possible strikes on key oil export infrastructure, including Kharg Island, the terminal responsible for handling most of Iran’s crude shipments.

The prospect of a diplomatic resolution immediately calmed energy markets, with traders reducing the geopolitical risk premium that had been built into oil prices since the crisis intensified.

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A major factor behind the market reaction was renewed optimism over the future of the Strait of Hormuz, one of the world’s most strategically important shipping lanes. The waterway serves as a critical route for nearly 20 percent of global oil and liquefied natural gas exports.

Concerns that conflict could disrupt shipping through the strait had fuelled fears of supply shortages and triggered a surge in crude prices over the past week. Trump’s latest comments, including suggestions that the passage could soon reopen fully to normal traffic, helped reverse those gains.

Despite the pullback, analysts caution that oil prices remain significantly above pre-crisis levels. Before tensions escalated, crude traded within the $70–$72 per barrel range. Market experts say prices are unlikely to return to those levels unless a comprehensive agreement is reached and normal oil flows through the Gulf are restored.

Iranian officials have also urged caution, noting that negotiations are still ongoing and that no final deal has been signed. The uncertainty means markets could remain volatile until concrete details emerge from the talks.

Energy analysts warn that any setback in negotiations or renewed threat to shipping in the Gulf could quickly push crude oil prices higher again. Conversely, a successful agreement could boost global supply, ease inflationary pressures, and provide relief for energy-importing countries struggling with high fuel costs.

Investors worldwide are now closely monitoring developments between Washington and Tehran, with the outcome expected to have significant implications for global oil markets, energy security, and the broader world economy.

Oil Prices Slide as Trump Hints at Breakthrough in Iran Negotiations

Trump Defends Rising Inflation, Says Prices Will Fall After Iran Conflict

United States President Donald Trump has sparked fresh debate over the state of the American economy after declaring that he “loves” the latest inflation figures, even as US inflation climbed to its highest level in three years.

New data released by the US Bureau of Labor Statistics (BLS) showed that annual inflation rose to 4.2 per cent in May 2026, up from 3.8 per cent in April, marking the third straight monthly increase and the highest rate recorded since 2023.

The increase was driven largely by rising energy prices, with gasoline, electricity and other fuel-related costs surging amid ongoing geopolitical tensions involving the United States, Israel and Iran.

Reacting to the figures at the White House, Trump appeared unconcerned about the inflation spike.

“I love it. The numbers were great. You know what I really love? I love the inflation,” the president told reporters.

The remark quickly drew attention across political and economic circles, with critics arguing that millions of Americans continue to struggle with higher living costs. However, Trump later clarified that he was not celebrating rising prices but rather expressing confidence that inflation remained lower than many analysts had predicted despite global instability.

Speaking to the New York Post, Trump said the latest figures demonstrated the resilience of the US economy during a period of international conflict.

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“I love the inflation numbers because of what I’m talking about. The numbers are going to be phenomenal because what’s showing is that despite the fact that we’re in a war, the numbers are much lower than anticipated, and when we’re out of that war, the numbers will be at lower numbers than they were even before it started,” he said.

Trump maintained that inflationary pressures would ease significantly once tensions in the Middle East subside. According to him, oil prices are expected to decline sharply after the conflict ends, helping to reduce transportation, manufacturing and household energy costs.

“When this conflict is over, you will see oil drop to where it was before,” he told reporters.

The latest inflation report showed that energy costs accounted for a significant share of the increase in consumer prices. Government data indicated that fuel-related expenses contributed heavily to the overall rise, with gasoline prices recording one of the sharpest increases.

Data from the American Automobile Association (AAA) showed that the national average price of regular gasoline rose to approximately $4.15 per gallon, compared with about $2.98 per gallon in late February.

Analysts have linked the increase in fuel prices to disruptions in global oil markets and concerns surrounding the Strait of Hormuz, one of the world’s most important oil shipping routes. Any threat to oil exports through the waterway typically drives up crude oil prices and increases inflationary pressures across major economies.

Beyond energy, the Bureau of Labor Statistics reported higher costs for airline tickets, healthcare services, communication services, recreation and other consumer goods and services.

The inflation increase presents a fresh challenge for the US Federal Reserve, which has a long-term inflation target of 2 per cent. Rising inflation often raises expectations that the central bank could maintain higher interest rates or introduce additional measures aimed at slowing price growth.

Financial markets are now closely watching upcoming policy decisions from the Federal Reserve as officials assess whether current inflation pressures are temporary or likely to persist.

The issue is also expected to become a major political talking point ahead of the upcoming US midterm elections, with inflation, fuel costs and affordability remaining among the top concerns for American voters.

Although current inflation remains well below the 9.1 per cent peak recorded in 2022, economists remain divided over the outlook for the coming months. While some believe easing geopolitical tensions could bring prices down, others warn that continued disruptions in global energy markets may keep inflation elevated for longer than expected.

For now, the latest data underscores the continued influence of energy prices on the US economy and sets the stage for a renewed debate over inflation, interest rates and economic policy in the months ahead.

Trump Defends Rising Inflation, Says Prices Will Fall After Iran Conflict

BREAKING: Trump Cancels US Strikes on Iran at Last Minute

DUBAI/WASHINGTON – President Donald Trump called off plans for renewed US military strikes on Iran at the last minute on Thursday, saying negotiations with Tehran had advanced to the highest levels of Iran’s leadership and had been approved by a broad coalition of regional powers. The dramatic reversal came hours before the strikes were expected to be carried out. But details of the diplomatic breakthrough after more than three months of war — including how Iran’s leadership had signaled its approval — were not immediately clear in Trump’s post on Truth Social. In his announcement, Trump stated: “Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening.” Trump added that “discussions and final points have been, in both concept and great detail, approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others.” He also stated: “The Naval Blockade will remain in full force and effect until this Transaction is finalized — Time and place of the signing to be announced shortly.” There was no immediate official comment from Iran. Trump has repeatedly claimed that a deal with Tehran was imminent in recent weeks, only to have Iranian officials deny such suggestions.

Earlier in the day, Trump had said the United States would hit Iran “VERY HARD TONIGHT” and even added that he wanted at some point to take Iran’s oil infrastructure hub Kharg Island, after a second day of strikes by both sides in the Gulf appeared to threaten a return to all-out war. Trump claimed on Truth Social that “Iran’s Navy, Air Force, Radar, Anti Aircraft, and all other forms of Defense, together with most of its offensive capability, are GONE!” Kharg Island processes approximately 90 percent of Iran’s crude exports and serves as a major revenue source for the Iranian economy. However, it remains heavily fortified by missile batteries, naval mines, and Revolutionary Guard units — meaning any ground invasion would require thousands of American troops.

A fragile ceasefire has been in place since early April 2026, brokered by Pakistan, following the outbreak of hostilities on February 28, 2026, when the US and Israel launched airstrikes on Iran. The war has since killed thousands of people. According to Al Jazeera statistics, at least 7,129 people have died, including 3,593 in Lebanon, 3,468 in Iran, 29 in Gulf states, 26 Israelis, and 13 American soldiers killed in Iranian retaliatory attacks. The war has also pushed up global oil prices and disrupted the Strait of Hormuz, through which approximately 20 percent of the world’s oil passed before the conflict. Oil prices fell sharply after Trump announced the cancellation of US plans to strike Iran, while stocks extended their gains as fears of immediate supply disruptions in the Gulf receded.

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Iranian sources and Western officials earlier said indirect US-Iranian talks on a preliminary peace deal had intensified in recent days, while the renewed hostilities this week undermined prospects for a swift end to the conflict. One Iranian source told Reuters: “This war, from a military standpoint, is a dead end. The Americans could not achieve their goals by attacking Iran. There has been progress in negotiations.” However, despite the latest hostilities, three Iranian sources and Western officials said the talks had not yet discussed in detail issues including a mechanism for the release of billions of dollars in frozen Iranian funds. Iran demands the release of $6-24 billion in frozen funds, while the US prefers staged humanitarian releases. Unresolved questions also remain over Iran’s nuclear enrichment capacity and uranium stockpile, as well as the temporary easing of Iran’s grip on the Strait of Hormuz. The US naval blockade remains in force until final signing.

Iran’s top negotiator, Mohammad Baqer Qalibaf, had warned against any rash moves following Trump’s initial threats. He wrote on X: “Wrong strategies and impulsive decisions will reset the entire board for the worse, explode energy infrastructure and markets and create an endless quagmire that you will be stuck in for years. You will see a different Iran.” United Nations Secretary-General Antonio Guterres called on both sides to redouble their efforts “toward a peaceful, comprehensive, and durable agreement that advances regional and international peace and security,” UN spokesperson Stephane Dujarric said. The framework of an interim deal would centre on a temporary easing of Iran’s grip on the Strait of Hormuz and phased access through the waterway, while ending the US naval blockade on Iranian ports. Unresolved questions over Tehran’s nuclear enrichment capacity and its stockpile of highly enriched uranium would be left for future talks. However, a top Iranian official, Mohsen Rezaei, military adviser to Supreme Leader Ayatollah Mojtaba Khamenei, told CNN that the talks were “at a deadlock” over the release of $24 billion in frozen assets, warning that the US would “enter into a dark corridor” should it resume fighting.

US Secretary of State Marco Rubio had previously declared victory in the conflict, stating that Washington had achieved its objectives of destroying Iran’s defense industrial base and significantly reducing its missile and UAV capabilities. Meanwhile, Trump raised the possibility earlier this month of a direct meeting with Iran’s Supreme Leader Ayatollah Mojtaba Khamenei, telling the New York Post that the Iranian leader had “certainly participated” in negotiations and that “I want to meet him.” The US and Iran traded air attacks on Thursday for a second straight day. The US launched fresh bombing raids overnight, the second round after Trump ordered retaliatory strikes on Tuesday following the shoot-down of a US Apache helicopter. Two US airmen were rescued from the Strait of Hormuz by an AI-powered drone vessel. Trump is seeking to push Iran into making a deal after months of stalemate since the ceasefire was declared at the start of April. The President has lost patience with Iran, telling reporters that “they keep playing us for suckers” and accusing Tehran’s negotiators of “stringing us along.”

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As the world awaits further details, Trump’s announcement suggests that a formal agreement could be imminent, though questions remain about specific provisions regarding Iran’s nuclear program, the reopening of the Strait of Hormuz, the release of frozen Iranian assets, and whether Iran’s Supreme Leader has indeed approved any deal. The war, now in its 100th day as of June 7, has not yielded a decisive military or diplomatic breakthrough. The casualty figures, energy prices, and economic impact continue to show the growing cost of the conflict for the Middle East and the global economy. Key events in this developing story include: on February 28, 2026, the US and Israel launched airstrikes on Iran, beginning the war; in early April 2026, a Pakistan-brokered ceasefire took effect; on April 8, 2026, a two-week ceasefire was announced, but Israel launched strikes on Lebanon hours later; on April 11-12, 2026, talks in Pakistan failed over the nuclear issue; on June 7, 2026, the war reached 100 days with casualties exceeding 7,000; on June 9, 2026, a US Apache helicopter was shot down, and retaliatory strikes were launched; in the early hours of June 10, 2026, Trump threatened to hit Iran “VERY HARD TONIGHT” and seize Kharg Island; later on June 10, 2026, Trump announced the cancellation of strikes, citing progress in talks; and a potential signing ceremony for an interim deal is to be announced. Key details to remember: Trump cancelled planned US military strikes against Iran hours before execution on June 10-11, 2026; the reason cited was progress in talks approved by Iran’s highest leadership and a regional coalition including the US, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others; the naval blockade remains in full force until final deal signing; earlier, Trump had threatened to hit Iran “VERY HARD TONIGHT” and seize Kharg Island, which processes 90% of Iran’s oil exports; a fragile ceasefire has been in place since early April 2026 following the outbreak of hostilities on February 28, 2026; casualties after 100 days of war stand at least 7,129 killed; the Strait of Hormuz has seen traffic drop from 100 ships per day to about 7 ships per day; oil prices have risen from $70 to approximately $100 per barrel, affecting 146 countries; Iran demands the release of $6-24 billion in frozen funds; and the UN Secretary-General has called for a durable peace agreement. This is a developing story. More details will be provided as information becomes available from the White House, Iranian officials, and international mediators.

BREAKING: Trump Cancels US Strikes on Iran at Last Minute