Texas oil falls to $71 after Trump announces U.S. and Iran will continue talks

U.S. oil prices experienced a decline, with the West Texas Intermediate (WTI) benchmark falling 0.93% to settle at $71.41 per barrel. This decrease came after President Donald Trump stated that the United States and Iran would continue negotiations, even as their previous truce ended.

By the end of the trading session, August WTI futures, the U.S. benchmark, lost $0.67 from the previous close. Trump announced that Washington would maintain dialogue with Tehran to resolve the conflict, but reiterated that the ceasefire agreed upon last month was over. He wrote on Truth Social, "The Islamic Republic asked us to continue the 'conversations.' We agreed to do so, but the U.S. told them, in no uncertain terms, that the ceasefire is OVER."

Adding to market uncertainty, Iran continued to insist on controlling the Strait of Hormuz, despite recent U.S. attacks. The International Energy Agency (IEA) noted that crude oil transit through Hormuz had surged in June due to the U.S.-Iran ceasefire, but the renewed escalation now clouds supply outlooks tied to a peace agreement. The IEA emphasized that the resumption of armed conflict highlights the risks of failing to reach a lasting peace agreement, which is essential for stabilizing oil markets.

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The Islamic Republic asked us to continue the 'conversations.' We agreed to do so, but the U.S. told them, in no uncertain terms, that the ceasefire is OVER.