Oil Surges 4% as Trump Denies Iran Talks Halted, Announces Lebanon Ceasefire

Oil prices soared over 4% on Monday, June 1, 2026, after conflicting signals from the Middle East. Brent crude briefly topped $97 a barrel before settling near $95, as President Donald Trump denied reports that Iran had paused indirect nuclear talks and said a ceasefire in Lebanon had been reached between Israel and Hezbollah. Iran’s semi-official media earlier said Tehran suspended the talks to protest Israeli military operations in Lebanon, warning it could block the Strait of Hormuz. Trump countered that diplomacy was “advancing rapidly” and that Israel and Hezbollah agreed to stop attacks. Israeli Prime Minister Benjamin Netanyahu, however, said there was no ceasefire and threatened to strike Beirut if Hezbollah targets Israeli civilians. The U.S. also tapped its Strategic Petroleum Reserve, releasing 8 million barrels last week to cushion supply disruptions. Inventories fell to 357 million barrels, the lowest since early 2024.