Markets gain and oil drops as Trump's peace signals reassure investors

Published on

02/06/2026 - 10:24 GMT+2

Crude prices mostly retraced on Tuesday after jumping at the start of the week as Iran suspended talks with the US and pledged to fully close the Strait of Hormuz, fuelling investor fears that the broader Middle East conflict could escalate rather than move towards a peace deal.

At the time of writing, US West Texas Intermediate (WTI) crude was down around 4% from its Monday peak to $91.3 per barrel, while Brent crude also dropped roughly 4% to $97.2 per barrel.

The turnaround in oil prices seems to be mostly tied to US President Donald Trump's reassuring rhetoric on Monday afternoon guaranteeing that talks with Iran are continuing at a "rapid pace".