Oil market stabilizes amid Trump’s shifting geopolitical stance
Oil prices on the New York fuel exchange are undecided after two sessions of increases. The market has started to see signals that U.S. President Donald Trump might be backing off from his efforts to end the war in Ukraine. Meanwhile, Iran is not willing to easily abandon its nuclear ambitions, brokers report.
A barrel of West Texas Intermediate crude for June delivery costs $62.72 on NYMEX in New York, showing a 0.05% increase. Brent on ICE for July is priced at $65.36 per barrel, a decrease of 0.27%.
The market has started to see signals that President Donald Trump may be backing away from his efforts aimed at ending the war between Russia and Ukraine.
The U.S. President said on Monday that his conversation with Russian President Vladimir Putin went very well, and according to him, Russia and Ukraine will immediately begin negotiations for a ceasefire. He noted, however, that the terms would be negotiated between the two sides.
Russia and Ukraine will immediately start negotiations toward a Ceasefire and, more importantly, an END to the War, Trump wrote on Truth Social.
"The conditions for that will be negotiated between the two parties, as it can only be, because they know details of a negotiation that nobody else would be aware of," he added.
Donald Trump indicated that he informed Ukrainian President Volodymyr Zelensky, European Commission President Ursula von der Leyen, French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni, German Chancellor Friedrich Merz, and Finnish President Alexander Stubb about the conversation.
"The Vatican, as represented by the Pope, has stated that it would be very interested in hosting the negotiations. Let the process begin!" Trump wrote.
Peace negotiations for a ceasefire between Ukraine and Russia might proceed without U.S. involvement.
"Talks with the U.S. will lead nowhere"
Meanwhile, there's no resolution in sight for the nuclear dispute between the U.S. and Iran, which could result in harsher restrictions on Iranian oil exports.
Iran maintained its position on Monday regarding the possibility of uranium enrichment.
Deputy Foreign Minister Majid Takht-Ravanchi stated that talks with the U.S. over Iran's nuclear program will "lead nowhere" unless Washington drops this demand.
"Our position on enrichment is clear and we have repeatedly stated that it is a national achievement from which we will not back down," Takht-Ravanchi declared.
However, Iranian Foreign Ministry spokesperson Esmail Bargei accused the U.S. authorities of "complicating negotiations" by publicly stating opinions that differ from bilateral agreements.
Iran: The nuclear program has peaceful intentions
U.S. Special Envoy for the Middle East Steve Witkoff reiterated on Sunday that any new U.S.-Iran nuclear agreement must include a ban on uranium enrichment by Tehran.
The United States argues that - with this capability - Iran will continue working on its own nuclear weapons. The authorities in Tehran assert that the Iranian nuclear program is exclusively peaceful.
Robert Rennie, an economist at Westpac Banking Corp., noted that under current circumstances, reaching a nuclear agreement between the U.S. and Iran could be a long process with uncertain results. He also commented on the oil market, stating that Brent crude appears overpriced in the $66–67 per barrel range and should ideally decline to around $60–65.
Last week, during his visit to the Middle East, U.S. President Donald Trump said that a nuclear agreement with Iran is very close. He simultaneously stressed that Tehran must "act quickly" on this issue.
