Oil prices eased on Tuesday after early gains as markets reacted to mixed diplomatic and security developments in the Middle East, particularly around US–Iran relations and ongoing tensions involving Israel and Hezbollah in Lebanon.
Brent crude futures slipped toward $94 per barrel, trading at $93.96 on June 2, 2026, down about 1.08% from the previous session, according to CFD-based market data tracking global oil prices. The decline trimmed gains recorded earlier in the previous trading session as investors reassessed geopolitical risk.
Sentiment in the market was shaped by uncertainty over US–Iran diplomatic engagement. Iranian media reported that Tehran had suspended communications with Washington following Israeli strikes in Lebanon, raising concerns over a possible breakdown in talks.
However, US President Donald Trump stated that negotiations were still ongoing, adding that Iran had not formally informed Washington of any decision to end discussions.
The conflicting accounts added to market uncertainty, with traders weighing whether tensions were escalating or remaining contained.
At the same time, regional security developments continued to influence sentiment, with ongoing tensions involving Israel and Hezbollah in Lebanon keeping risk perceptions elevated.
Lebanese authorities have called for any extension of the ceasefire agreement to be expanded across wider territory, underscoring the fragility of efforts to stabilise the situation.
Despite short-term weakness, oil prices remain significantly higher year-on-year. Brent crude has fallen nearly 18% over the past month amid volatility, but is still about 43% higher compared to the same period last year, reflecting a persistent geopolitical risk premium in the market.
