Oil prices fell more than 1% on 2 June, reversing earlier gains, after US President Donald Trump said talks with Iran were still ongoing despite reports that Tehran had paused indirect negotiations with Washington, reported Reuters.
By 08:13 GMT, Brent crude futures had decreased by $1.52, or 1.6%, to $93.46 per barrel (bbl).
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Meanwhile, US West Texas Intermediate (WTI) had dropped $1.43, or 1.6%, to $90.73/bbl.
On Monday, both benchmarks increased by more than 5%, following a drop of more than 16% in May amid expectations of a peace deal.
Since the conflict began, Iran has significantly restricted non-Iranian shipping in the Gulf, impacting roughly 20% of global oil and liquefied natural gas flows and causing prices to rise by 50% or more.
The Middle East crisis has also influenced crude export patterns.
US crude exports reached 5.6 million barrels per day (mbbl/d) in May, as Asian and European refiners sought more US oil, according to ship tracking estimates.
A preliminary Reuters poll indicated that US crude stockpiles are expected to have dropped by around 3.6mbbl for the week ending 29 May, with distillate and gasoline inventories likely falling as well.
Early on 2 June, Russian drones and missiles targeted Kyiv and other Ukrainian cities, resulting in at least 11 fatalities and more than 100 injuries, according to authorities, following days of warnings about a significant attack.
During an interview with CNBC, President Trump stated that he was unconcerned if talks with Iran concluded.
However, he later posted on social media affirming that discussions were ongoing and told ABC News a deal might be reached to extend the ceasefire and potentially reopen the Strait of Hormuz “over the next week”.
Meanwhile, on Monday, Lebanon reported a partial ceasefire between Hezbollah and Israel, marking a limited reduction in tensions linked to the wider conflict involving Iran.
