Oil prices little changed after Trump says he expects a deal with Iran
West Texas Intermediate and Brent had settled 7% and 5% higher on Monday.
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This general view shows oil tanks and facilities at Yeosu National Industrial Complex, the largest petrochemical industrial complex in South Korea, in Yeosu on April 7, 2026. (Photo by Shin Yong-ju / AFP via Getty Images)
Shin Yong-ju | Afp | Getty Images
Oil prices were little changed Tuesday, after President Donald Trump told CNBC that he expects a deal with Iran but is ready to resume military strikes if negotiations this week don't result in an agreement.
"What I think is that we're going to end up with a great deal," Trump said in a phone interview on "Squawk Box." "I think they have no choice. We've taken out their navy, we've taken out their air force, we've taken out their leaders."
West Texas Intermediate futures for May delivery lost 0.23% to $89.40 per barrel as of 8:44 a.m. ET, while international benchmark Brent crude futures for June delivery slid 0.1% to $95.38 per barrel.
Trump said he's not interested in extending the ceasefire past Wednesday. He threatened to resume the U.S. war against Iran if a deal is not reached.
"I expect to be bombing because I think that's a better attitude to go in with," Trump told CNBC. "But we're ready to go. I mean, the military is raring to go."
Reports suggest that Vice President JD Vance would lead the U.S. delegation to Pakistan. Senior Iranian officials have said publicly that they are not interested in negotiations under the current circumstances.
"We do not accept negotiations under the shadow of threats, and in the past two weeks, we have prepared to reveal new cards on the battlefield," Mohammad Bagher Ghalibaf, Iran's parliamentary speaker, said Tuesday in a post on X.
Rystad Energy said in a note on Tuesday that the Hormuz disruption has already driven a major upgrade to its 2026 oil price outlook, and warned that if oil prices push through to and sustain $100, it could unlock as much as 2.1 million barrels a day of new supply from South America.
"South America is now positioned as the world's most consequential source of incremental supply," said Radhika Bansal, senior vice president at Rystad Energy.
"The Middle East conflict has done more than spike oil prices — it has exposed how dangerously concentrated global supply chains are around the Strait of Hormuz," she added.
