Oil Prices Ease Amid Hopes for US-Iran Peace Talks

Early Tuesday, Asian oil markets saw a decline as renewed US-Iran discussions raised hopes of stabilizing energy supply disruptions. Global benchmark Brent crude dropped by approximately 1% to $98.40 per barrel, while US-based oil prices fell by 1.7% to $97.40. This moderation followed President Donald Trump’s announcement that Iran had reached out to Washington about potential diplomatic solutions.

Earlier in the week, oil prices had surged past $100 per barrel after Trump ordered a blockade of Iran’s ports following failed weekend negotiations. Speaking outside the White House on Monday, Trump remarked:

“I can tell you we’ve been called by the other side. They’d like to make a deal very badly.”

Separately, the New York Times reported that Iran had floated an offer to pause uranium enrichment for up to five years, which the US dismissed as insufficient. The outlet cited sources from both nations, noting that talks in Pakistan had seen exchanges of proposals but left the two sides still far from consensus. Despite this, the report suggested a potential second round of direct talks could emerge if progress continues.

Asian stock markets showed modest gains, with Japan’s Nikkei 225 rising 2.6% and South Korea’s Kospi climbing over 3%. Economies dependent on Gulf energy supplies have faced significant pressure due to the ongoing conflict. The Strait of Hormuz, a critical shipping route, has intensified as Iran vowed to target vessels following US-Israeli strikes since February 28. Nearly 20% of global oil and gas shipments pass through this strait, amplifying its strategic importance.

US Energy Secretary Chris Wright noted on Monday that prices might peak soon as the waterway remains closed. “We’re going to see energy prices high—and maybe even rising—until meaningful ship traffic resumes through the Strait of Hormuz,” Wright stated at the Semafor World Economy Forum. “That could mark the peak oil price, likely within the next few weeks.” The BBC has sought additional comments from the White House.