US Secretary of War Pete Hegseth (center) speaks as (left to right) US Secretary of State Marco Rubio, US President Donald Trump, US Commerce Secretary Howard Lutnick, US Transportation Secretary Sean Duffy and US Secretary of Homeland Security Markwayne Mullin listen during a Cabinet meeting in the Cabinet Room of the White House on May 27, 2026 in Washington, DC. (AFP /Win McNamee/Getty Images)
Oil prices fell Wednesday while stock markets diverged over conflicting headlines on talks between Iran and the US to reopen the Strait of Hormuz to Gulf crude shipments.Hopes of an imminent deal to avoid further hostilities in the Mideast war had bolstered optimism earlier in the session, with benchmark oil contracts falling more than 5 percent.
But a White House statement rejecting an Iranian report about a framework deal prompted caution, even though analysts say most investors still expect the negotiations to bear fruit.
"The hope will be that this is finally the week when a real breakthrough is achieved, but should negotiations fail then we could see market patience wear thin," said AJ Bell investment director Russ Mould.
He noted, however, that "Even if an agreement is reached, it will take time to get energy infrastructure fully back online and shipments flowing through the Strait of Hormuz at anywhere near pre-war levels."
