Oil prices fell in early Asian trade on Tuesday as expectations of renewed negotiations between the United States and Iran eased concerns about further disruptions to global energy supplies.
The global benchmark Brent crude dropped by around 1% to $98.40 per barrel, while US-traded crude declined by 1.7% to $97.40. The decline followed comments from former US President Donald Trump, who indicated that Iran had reached out to Washington regarding a potential agreement.
Speaking to reporters outside the White House, Trump stated that Tehran was interested in resuming discussions and “would like to make a deal very badly.” The remarks signaled a possible shift toward diplomacy after heightened tensions in recent days.
Oil prices had earlier surged above $100 per barrel after the United States ordered a blockade of Iranian ports following the collapse of negotiations over the weekend. The escalation raised fears of supply disruptions, particularly given Iran’s strategic position in global energy markets.
According to a report by the The New York Times, Iran proposed suspending uranium enrichment for up to five years as part of a potential agreement. However, the United States reportedly rejected the offer, insisting on a longer suspension period of up to 20 years. The report, citing officials from both countries, noted that while proposals have been exchanged, significant differences remain.
Talks between Washington and Tehran, reportedly held in Pakistan, have not yet resulted in a breakthrough. Despite this, the discussions indicate that diplomatic channels remain open, with the possibility of a second round of face-to-face negotiations.
The White House has not officially commented on the latest developments.
Meanwhile, Asian financial markets responded positively to the easing concerns. Japan’s Nikkei 225 rose by 2.6%, while South Korea’s Kospi gained more than 3%, reflecting improved investor sentiment.
The broader context remains shaped by ongoing tensions in the Gulf region. The Strait of Hormuz, through which nearly 20% of global oil and gas shipments pass, has emerged as a critical flashpoint. Iran has threatened to target vessels transiting the strait in response to US-Israeli strikes since late February, raising concerns about the continuity of global energy flows.
Countries across Asia, which rely heavily on energy imports from the Gulf, have been particularly affected by the volatility in oil prices and supply uncertainty.
US Energy Secretary Chris Wright stated that oil prices could continue to rise in the coming weeks if shipping disruptions persist. He noted that prices are likely to peak when maritime traffic resumes through the Strait of Hormuz, which remains effectively constrained.
The situation highlights the continued sensitivity of global energy markets to geopolitical developments. While renewed diplomatic signals have temporarily eased market pressure, unresolved differences between the US and Iran, along with ongoing regional tensions, continue to pose risks to energy stability.