Oil prices fall a second day as Trump signals possible Iran deal

Oil prices fell for a second day on Tuesday after President Donald Trump said he was seeing progress toward a possible agreement with Iran and would briefly pause an operation to help escort ships through the Strait of Hormuz.

Brent crude fell 1.38% to $108.35 a barrel, while U.S. West Texas Intermediate lost 1.47% to $100.77, according to Reuters reporting. That followed a previous session in which oil prices dropped about 4%.

The move reflected a market view that any easing of tensions involving Iran could reduce the risk of disruption to shipping through the Strait of Hormuz, a critical chokepoint for global oil flows.

Trump’s comments came as traders watched for signs that negotiations could lower the chance of a wider confrontation in the region. The reported pause in the escort operation suggested officials were responding to the possibility that diplomatic progress could reduce immediate security risks.

The developments remain fluid. Reuters reported that the price decline came after Trump’s remarks, but it was not clear whether talks would produce a final agreement or how long any pause in the escort operation would last.

Oil traders will continue to watch for fresh statements from Washington and Tehran, as well as any further price reaction in the days ahead.