Oil Prices Surge to Seven-Day Peak as Iran Reassesses U.S. Ceasefire Proposal

NEW YORK, June 2 (Reuters) – Oil markets climbed approximately 1% to reach their highest levels in a week on Tuesday, driven by volatile trading conditions and heightened anticipation regarding the ongoing conflict in Iran. Investors are closely monitoring Tehran’s evaluation of a potential agreement with Washington aimed at ending the hostilities.

By the close of trading, Brent crude futures gained $1.02, or 1.1%, to settle at $96.00 per barrel. Simultaneously, U.S. West Texas Intermediate (WTI) crude advanced $1.60, or 1.7%, finishing at $93.76. These settlements marked the strongest closing prices for both major benchmarks since May 26.

According to Iranian media reports published on Tuesday, Tehran is currently reviewing the proposed deal with the United States to halt the war but has not engaged in direct communication with Washington for several days. This account contrasts with statements from U.S. President Donald Trump, who asserted that negotiations have been proceeding without interruption.

The geopolitical standoff, now more than three months old following the launch of strikes by the U.S. and Israel against Iran, remains in a precarious stalemate. Although a fragile ceasefire is currently in effect, the strategic Strait of Hormuz remains largely obstructed to maritime traffic. Since the onset of the conflict, Iran has effectively blocked most non-Iranian shipping through the Gulf, disrupting approximately 20% of global oil and liquefied natural gas exports. This supply disruption has propelled prices upward by more than 50%. Additionally, the United States has enforced a blockade on Iranian ports.

“The (oil) complex continues to gyrate wildly amid conflicting comments out of the White House and Iran as well as between Trump and (Israeli Prime Minister Benjamin) Netanyahu,” Ritterbusch and Associates, an energy advisory firm, stated in a research note. The firm added, “There are still various moving parts to this drama, but at the end of the day a significant reopening of the Strait of Hormuz doesn't appear much closer than was the case a couple of months ago.”

On Monday, Trump indicated that talks were ongoing and predicted a deal within the next week to extend the ceasefire initially agreed upon in April and to reopen the strait. Meanwhile, U.S. Secretary of State Marco Rubio informed lawmakers on Tuesday that Iran had agreed to discuss aspects of its nuclear program that it had previously declined to address. However, Rubio cautioned that this willingness to talk did not guarantee a final agreement.

Conversely, Iran’s semi-official Fars news agency, citing a source, reported that communications regarding the potential deal—or memorandum of understanding—had ceased several days ago. The last message sent by Tehran reportedly concerned its ally Lebanon. Iran is demanding an end to Israeli military incursions into Lebanon. On Tuesday, Israel continued its strikes on southern Lebanon, intensifying its campaign against Hezbollah. This action followed a request from Trump to Prime Minister Netanyahu to avoid attacking Beirut in an effort to prevent further escalation in the three-month-long war.

Source: Yahoo News Generated at: 2026-06-02 22:37:49 UTC