Oil Prices Edge Lower On Hopes Of Potential US-Iran Peace Deal

(RTTNews) - Oil prices traded lower on Tuesday amid renewed hopes of U.S.-Iran talks, with reports suggesting that there could be a second round of talks to end the West Asia conflict.

Brent crude futures for June delivery fell over 1 percent to $98.31 a barrel while WTI crude futures for May delivery were down 2.2 percent at $96.93.

Investors remain hopeful that there may still be a path to a peace deal between the United States and Iran.

Without further elaborating details, U.S. President Donald Trump said on Monday that the U.S. has been called by the other side and he is still willing to engage with Tehran, helping ease concerns about further disruptions to energy supplies.

"I can tell you we've been called by the other side. They'd like to make a deal very badly," Trump told reporters on Monday - adding to speculation the two sides are exploring a second round of face-to-face negotiations to secure a lasting ceasefire. Discussions between Washinton and Tehran are ongoing and another round of negotiations remains possible, with Turkey reportedly working to bridge differences between both sides, according to CNN.

The U.S. administration remains cautiously optimistic that a diplomatic breakthrough is still achievable, and both sides could consider extending the ceasefire deadline to allow additional time for negotiations, it was said.

According to reports by the New York Times and the Wall Street Journal, Tehran proposed suspending uranium enrichment for up to five years, an offer rejected by Washington which insisted on a 20-year freeze.

As global oil routes face disruption, Beijing cautioned Washington against interference and urged all sides to exercise restraint and avoid actions that could intensify the crisis.

Also, China has rejected U.S. intelligence claims that it is preparing to supply weapons to Iran, calling the allegations "baseless smears."

Meanwhile, the International Energy Agency (IEA) has sharply cut its forecasts for global oil supply and demand growth this year as the Middle East conflict disrupts energy supplies and weighs on global economic growth.

The IEA expects global oil demand to fall by 80,000 barrels per day in 2026 as scarcity and higher prices persist.

According to the Paris-based watchdog, global oil supply is expected to fall by 1.5 million bpd this year, down from a 1.1 million bpd projected rise last month.