Possible U.S.-Iran talks revive hopes of easing Hormuz tensions
Aerial view of the Chevron EL Segundo refinery, one of California’s largest oil processing facilities, from a plane taking off from LAX on April 8, 2026, over Manhattan Beach, California.
Mario Tama | Getty Images
Oil prices continued their decline after falling sharply on Tuesday amid growing optimism that a diplomatic solution to the Middle East conflict could be reached.
US crude oil futures for May delivery fell by 0.88% to $90.4 per barrel as of 20:35 GMT. International benchmark Brent futures for June delivery lost 0.31% to $94.47 per barrel.
A second round of U.S.-Iran talks is being considered, but no official schedule has been set, a White House official told CNBC on Tuesday.
President Donald Trump later said the talks could take place in Islamabad “within the next two days,” according to the New York Post.
Oil prices since the beginning of the year
The report stated that Trump had previously stated that the talks were progressing slowly and that the negotiations would probably be held in Europe, but he was called back with updated details shortly after.
The renewed push for talks follows earlier reports that talks aimed at resolving the Middle East conflict could resume before the end of a fragile two-week ceasefire.
“The resumption of flows in the Strait of Hormuz remains the most important variable that will ease the pressure on energy supplies, prices and the global economy,” the IEA said in a report published Tuesday. he said.
Flows through the strait remain limited, hovering around 10% of normal levels, or about 2.1 million barrels per day on a four-day moving average, Goldman Sachs said in a note Wednesday.
A US blockade of Iranian ports could further suppress remaining flows; Washington reported that many ships returned within the first 24 hours, even as transit continued through ports outside Iran.
Goldman noted that disruptions to crude oil production in the Middle East appear to be less severe than initially feared. It estimates average closures in the Persian Gulf will be around 8 million barrels per day in March, due in part to greater use of storage and oil held in tankers; This is lower than previous expectations and the International Energy Agency’s forecast of 10 million barrels per day.
