Brent crude settled at $90.38 per barrel, down $2.72 (2.9%), while West Texas Intermediate (WTI) crude closed at $87.71 per barrel, falling $2.32 (2.6%). The decline reversed much of the previous session’s gains as traders reduced the geopolitical risk premium that has supported oil prices throughout the conflict.
In a social media post, Trump said he called off the planned attacks because negotiations had advanced to the highest levels of Iran’s leadership and a broader coalition of regional powers. While he indicated that key elements of a potential agreement had been approved, Iranian officials disputed that characterization. Iran’s semi-official Fars News Agency reported that Tehran had not approved any final agreement, highlighting the continued uncertainty surrounding the negotiations.
Earlier in the day, Trump had warned that the United States would strike Iran “very hard” if diplomacy failed. Despite the conflicting signals, reports from both Iranian and Western sources indicated that indirect talks aimed at securing a preliminary peace framework had intensified.
The Strait of Hormuz remained a central focus for energy markets. Although Iran reiterated that the waterway remains closed and warned that vessels attempting to transit could come under attack, evidence suggests some shipping activity continues. The U.S. military reported that commercial vessels were still moving through the strait, while shipping data indicated several liquefied natural gas cargoes had recently exited the region bound for Asia.
Prior to the conflict, the Strait of Hormuz handled approximately 20% of global oil and natural gas shipments. The disruption to traffic since late February has been one of the primary drivers of elevated oil prices and tightening global inventories.
Market participants also continued to monitor supply fundamentals. Data released Wednesday by the Energy Information Administration showed U.S. crude inventories fell by 7.2 million barrels during the week ended June 5, significantly exceeding expectations for a draw of roughly 4 million barrels. Total U.S. crude stockpiles declined to 426.5 million barrels, underscoring continued tightness in physical oil markets despite recent price weakness.