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US Oil Update: Crude Rises After Trump Says Iran Peace Talks Remain Active

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Crude oil futures settled higher in after-hours trading on Tuesday after Trump said talks with Iran remain ongoing, countering earlier reports of a breakdown in negotiations, while Tehran is reportedly reviewing a US proposal to end the conflict.

Front-month West Texas Intermediate crude futures advanced by 1.33% to $93.39 per barrel, while Brent futures rose 0.80% to $95.74/bbl.

Iranian negotiators are reviewing a proposed agreement with the US to halt the conflict in the Middle East, but have not communicated with Washington for a few days, local media reported on Tuesday, after President Trump said peace negotiations were ongoing.

Trump said on Tuesday that reports suggesting that the US and Iran had stopped communicating are "fake and erroneous," adding that talks between Washington and Tehran have continued over recent days.

The US President said that while the direction of the talks remains uncertain, he has told Iran it is "time, one way or another, to make a deal," arguing that the current situation cannot continue indefinitely.

"The conversations between us have been going on continuously, including four days ago, three days ago, two days ago, one day ago, and today," Trump said in a social media post on Trust Social.

Soojin Kim, research analyst at MUFG, said oil holds gains as uncertainty surrounding US-Iran negotiations raised concerns that disruptions to energy flows from the Persian Gulf could persist.

Fueling uncertainty, Trump and Prime Minister Benjamin Netanyahu offered conflicting accounts of a call about the ongoing war between Israel and Hezbollah.

On Monday, Trump said he held a call with Prime Minister Netanyahu during which he instructed Israel to halt a planned strike on parts of Beirut, as regional tensions escalated amid continued cross-border violence.

Netanyahu, in a separate statement, said he told the US President that Israel would target locations in Beirut if Hezbollah did not stop attacks against Israel, following ongoing exchanges of fire in southern Lebanon.

With commercial traffic through Hormuz still constrained and geopolitical tensions extending to Lebanon, investors remain focused on the risk of prolonged supply disruptions in a region that normally handles around one-fifth of global oil and LNG trade, said Soojin Kim, research analyst at MUFG.

Market participants' focus remains on Hormuz, as commercial traffic through the strategic waterway remains constrained amid uncertainty over the US-Iran peace deal.

The US Central Command said on Tuesday that US forces redirected 122 Iran-linked commercial vessels, while Iranian media reported that 24 vessels had transited the Hormuz over the past 24 hours.

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Hormuz Traffic Remains Subdued Amid Iran Peace-Deal Uncertainty, Bloomberg Analysis Says

Commercial vessel traffic through the Strait of Hormuz remained limited on Tuesday amid uncertainty over a potential US-Iran peace deal, according to Bloomberg analysis.Ship-tracking data indicated only two inbound commercial transits on Tuesday morning, following two outbound movements on Monday.Though Iranian media reported that 24 vessels had transited the Strait of Hormuz over the past 24 hours with authorization from the Islamic Revolutionary Guard, analysts said such figures are difficult to verify due to frequent electronic interference and potential data overlap with smaller coastal craft.President Trump has expressed continued hope for an interim peace deal, even as Iran signaled potential friction in negotiations following escalating hostilities involving Israel in Lebanon.Iranian officials are reportedly reviewing a "final text" to be sent to the US, while reiterating concerns that Washington has previously failed to uphold commitments in earlier discussions.Meanwhile, regional shipping patterns have also been affected by the US blockade of Iranian-linked vessels in the Gulf of Oman. The US Central Command said on Monday that 121 commercial vessels had been rerouted as a result of recent security measures.Maritime tracking has been further complicated by persistent AIS signal interference in the region, with vessel counts likely to be revised as ships re-emerge outside high-risk zones.Industry analysts say Iranian and Iran-linked vessels have frequently switched off tracking systems when approaching the Strait, a practice that predates current tensions and can leave ships untraceable for extended periods.

Oil & Energy

Trump Says US-Iran Talks Continue; Rubio Says US Prefers Negotiations to Reopen Hormuz

President Donald Trump said Tuesday that US-Iran talks are "going on continuously," dismissing media reports that indicate that stated talks were halted.Trump said in a Truth Social post that reports of a halt in US-Iran communications were "false and erroneous" and that discussions between Washington and Tehran remained ongoing."The conversations between us have been going on continuously, including four days ago, three days ago, two days ago, one day ago, and today," Trump said."Where they lead, one never knows, but as I told Iran, 'It's time, one way or another, for you to make a Deal. You've been doing this for 47 years, and it cannot be allowed to go on any longer'," Trump said, reiterating his call for Tehran to reach an agreement.Meanwhile, Secretary of State Marco Rubio struck a similar diplomatic tone during a Senate hearing on Tuesday while outlining the administration's conditions for restoring commercial traffic through the Strait of Hormuz.Rubio said the Trump administration has not discussed sanctions relief for Iran in exchange for reopening the Strait of Hormuz, arguing that any easing of restrictions must remain tied to Tehran's nuclear activities."... any sanctions relief is condition-based, which means it has to be in return for the reason why those sanctions were put in place in the first place, which is their nuclear program," Rubio said."Iran is being sanctioned because they've highly enriched uranium. Iran is being sanctioned because of their nuclear activities. If they agree to give up those things, there will be sanctions relief associated with their commitment and compliance," Rubio said.He added that the US would prefer to continue negotiations to reopen the Strait of Hormuz."If Iran wants to be able to move its oil again... they will have to reopen the Strait, if they refuse to do so, then we have other options available to us but we would prefer to negotiate," Rubio said.He added that Iran must reopen the Strait of Hormuz, stop charging transit fees and end threats against commercial vessels before broader negotiations can proceed. "They have to announce very clearly, that straits are now open, we're are not charging a toll, we'll help remove the mines... and they will not fire on ships," Rubio said.After reopening the Strait, talks would shift to Iran's nuclear program and its stockpile of highly enriched uranium, Rubio said."Phase two is... the disposition of the highly enriched uranium that is still very deep in the mountains somewhere," Rubio said, adding that Iran must accept severe long-term limits on uranium enrichment or agree to end the activity altogether.Rubio said specialists would likely need up to 90 days to work through technical details surrounding Iran's nuclear program if Tehran agrees to proceed.Rubio said Iran's supreme leader remains alive and is becoming increasingly involved in decision-making, suggesting Tehran's leadership continues to play an active role in ongoing discussions with the US.On energy markets, Rubio said countries across the Indo-Pacific remain heavily dependent on flows through the Strait of Hormuz and will need time to diversify supplies.The Strait of Hormuz carries roughly 80% to 90% of the Indo-Pacific's energy supplies, Rubio said, adding that the region will see "more diversification on where they get the energy from, including from the United States."Asked whether he could commit to not extending a general license tied to Russian oil transactions when it expires on June 17, Rubio said the decision ultimately rests with the Treasury Department.Rubio said the administration previously approved the temporary measure to help maintain global oil supplies and avoid disruptions that could have pushed energy prices higher, describing the license as a time-limited response to market conditions.Oil prices rose in midday trading on Tuesday as investors monitored developments in US-Iran negotiations, with Brent crude increasing 1.14% to $96.06 per barrel and US West Texas Intermediate crude gaining 1.83% to $93.85/bbl.

Oil & Energy

Market Chatter: UAE Weighs Products Pipeline Bypassing Strait of Hormuz

The UAE is weighing plans to build an additional pipeline for refined petroleum products that would bypass the Strait of Hormuz and deliver fuels directly to the country's east coast, Bloomberg reported on Tuesday, citing a senior executive at Abu Dhabi National Oil Company.Adnoc, which is already constructing a crude pipeline aimed at doubling capacity to the port of Fujairah on the UAE's eastern seaboard, is now "potentially" considering a separate conduit for oil products, Philippe Khoury, executive vice president for sales & trading, reportedly said at S&P Global's Middle East Petroleum & Gas Conference in London.Adnoc did not immediately reply to a request for comment by.The UAE currently relies on a 1.5 million barrel-per-day pipeline linking its inland oil fields to Fujairah, a route that has served as a critical alternative during recent Middle East tensions that disrupted shipping through the Strait of Hormuz.The pipeline has allowed the UAE to maintain export flows and partially offset revenue losses after Iran effectively curtailed normal transit through the Strait following the outbreak of conflict in late February.Adnoc is accelerating expansion plans already underway, reflecting efforts to strengthen export resilience and reduce exposure to potential disruptions at the key shipping chokepoint.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)