Oil Holds Biggest Gain in a Month as US-Iran Talks Stall, Threatening Hormuz Flows

Oil prices steadied on June 1, 2026, after surging over 5% in the previous session, as conflicting signals from US-Iran negotiations heightened the risk of prolonged supply disruptions through the Strait of Hormuz. West Texas Intermediate traded near $92 a barrel, while Brent crude settled just below $95. The rally was triggered by a Tasnim news agency report that Iran had halted talks with Washington in protest of Israeli attacks in Lebanon and that Tehran aimed to close the Strait of Hormuz and the Bab el-Mandeb Strait. However, President Donald Trump later said a memorandum of understanding to reopen the strait could be reached within a week, though the US still needed "a few more points." CIBC’s Rebecca Babin noted that losing active negotiations removes the "security blanket" markets priced for a best-case outcome. Separately, a US-brokered ceasefire between Israel and Hezbollah faces extension talks, adding to geopolitical uncertainty.