Oil Drops 4% as Trump Signals Iran Talks Progress; Markets Gain

Oil prices retreated about 4% on June 2, 2026, from the prior day’s highs after U.S. President Donald Trump said negotiations with Iran are progressing, easing fears of supply disruptions that had jolted markets. The comments, which lacked specifics on a deal, sparked a relief rally in equities, with the S&P 500 and European indices moving higher. Crude had jumped on June 1 amid escalating tensions over Iran’s nuclear program, fueling concerns of tighter sanctions. Trump’s statement marked a sharp rhetorical shift, prompting investors to unwind safe-haven bets. Analysts noted the pullback in oil offered immediate respite to inflation-sensitive assets, though they cautioned that any breakdown in talks could quickly reverse the move.