عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Oil Slips after Trump Says Talks with Iran are Ongoing

An oil rig operating in an oil field in the Permian Basin, Texas, USA (Reuters)
An oil rig operating in an oil field in the Permian Basin, Texas, USA (Reuters)
TT
TT

Oil Slips after Trump Says Talks with Iran are Ongoing

An oil rig operating in an oil field in the Permian Basin, Texas, USA (Reuters)
An oil rig operating in an oil field in the Permian Basin, Texas, USA (Reuters)

Oil prices trended lower on Tuesday following the previous session's sharp gains as the market remained cautious about progress in US-Iran peace talks.

US President Donald Trump said on Monday talks with Iran were ongoing, while Tasnim news agency reported earlier that Tehran had suspended indirect negotiations with Washington.

Brent crude futures lost 75 cents, or 0.79%, to $94.23 a barrel at 0434 GMT, while US West Texas Intermediate fell 85 cents, or 0.92%, to $91.31 a barrel.

Both benchmarks rose more than 5% in the previous session, having posted a monthly loss of more than 16% in May on hopes of a ‌peace deal.

"While markets ‌had hoped to move past the uncertainty amid prospects of ‌a ⁠potential deal, nothing ⁠appears to have changed for oil as of this morning," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

In an interview with CNBC on Monday, Trump said he did not mind if the talks were over. But shortly after, he issued a social media post saying talks with Iran were continuing and told ABC News that he expected a deal to extend the ceasefire and reopen the Strait of Hormuz “over the next week”.

"The ⁠market is currently focused on whether there's any concrete progress or ‌setbacks in US-Iran negotiations, the tone and substance ‌of statements from both sides (particularly Iran's threats regarding the Strait of Hormuz), and actual physical tanker movements ‌through the waterway," said Tim Waterer, chief market analyst at KCM Trade.

The status ‌of the US-Iran negotiations at any given point will ultimately determine whether the current risk premium stays embedded in oil prices or starts to unwind, Waterer added.

Lebanon on Monday announced a partial ceasefire between Hezbollah and Israel, in what would amount to a limited de-escalation of a conflict ‌that has inflamed the broader war with Iran.

Iran has effectively halted nearly all non-Iranian shipping into and out of the Gulf ⁠since the ⁠war began, choking off about a fifth of global oil and liquefied natural gas flows and driving prices up by 50% or more.

US crude exports climbed to a record 5.6 million barrels per day in May as the Middle East crisis pushed up demand for the country's oil from Asian and European refiners, ship tracking estimates showed on Monday.

According to a preliminary Reuters poll released on Monday, US crude stockpiles are expected to have fallen by about 3.6 million barrels in the week ended May 29, extending the prior week's draw, while distillates and gasoline inventories also are likely to have declined.

Shipping executives meeting in Athens on Monday said that any peace deal worked out between the US and Iran would need to offer clear rules allowing vessels to resume normal business via the Strait of Hormuz.

Most Viewed

 
 
Business

US Economy Expanded at Solid 2.1% Pace in January-March, Government Says

President Donald Trump stands on stage after speaking at the opening of the Great American State Fair on the National Mall, Wednesday, June 24, 2026, in Washington. (AP Photo/Julia Demaree Nikhinson)
President Donald Trump stands on stage after speaking at the opening of the Great American State Fair on the National Mall, Wednesday, June 24, 2026, in Washington. (AP Photo/Julia Demaree Nikhinson)
TT
TT

US Economy Expanded at Solid 2.1% Pace in January-March, Government Says

President Donald Trump stands on stage after speaking at the opening of the Great American State Fair on the National Mall, Wednesday, June 24, 2026, in Washington. (AP Photo/Julia Demaree Nikhinson)
President Donald Trump stands on stage after speaking at the opening of the Great American State Fair on the National Mall, Wednesday, June 24, 2026, in Washington. (AP Photo/Julia Demaree Nikhinson)

The US economy expanded at a solid and unexpected 2.1% annual pace from January through March, the Commerce Department reported Thursday in its final estimate of first-quarter growth.

The growth in gross domestic product — the nation’s output of goods and services — marked a rebound from a sluggish 0.5% in the last three months of 2025 when a 43-day federal government shutdown weighed on the economy. Thursday’s numbers were an upgrade from of Commerce’s previous first-quarter estimate of 1.6% growth, The Associated Press reported.

Business investment surged, probably reflecting an investment boom in artificial intelligence. But consumer spending, which accounts for around 70% of US economic activity, fell sharply from fourth-quarter 2025 and from Commerce’s previous estimate in a sign that consumers may be cutting back in the face of higher gasoline prices caused by the war with Iran.

“It was unsettling to see consumer spending revised even lower,” Heather Long, chief economist at Navy Federal Credit Union, said in a commentary.

"Spending is likely to tick up in (the second quarter), but it’s worth watching carefully... It’s been a tough few months for American consumers, but most have been able to make it through. The question is how much relief is coming” as the US and Iran continue talks toward a resolution of the conflict.

Excluding housing, private investment jumped 10.6%, up from 2.4% in fourth-quarter 2025. In a sign of the AI boom, investment in information-processing equipment jumped at a 39.9% pace as companies scrambled to outfit their data centers. But Michael Reid, head of US economics at RBC Capital Markets, said before Thursday’s report came out that “unfortunately, it’s not a sustainable path.’’ He expects data center investment to lose momentum going forward.

Residential investment, weighed down by high interest rates, dropped 7.8% from January through March, biggest fall since late 2022 and the fifth straight quarterly decline.

The federal government's spending and investment rose at a 9.4% clip in the first quarter after dropping 16.6% in October-December 2025 largely because of the government shutdown.

Imports, which are subtracted from GDP, grew at a slower pace than last estimated from January through March. They still subtracted 1.49 percentage points from first-quarter growth, but that was down from a 2.59 percentage-point hit in the previous estimate and was a major factor in Thursday's upgrade.

The US economy — the world’s biggest — has continued to chug along despite the Iran energy shock. The American job market has proven especially resilient. Employers added an average 188,000 jobs a month from March through May after adding fewer than 10,000 a month in 2025 amid uncertainty over President Donald Trump’s trade and immigration policies.

Thursday’s report was the Commerce Department’s third and final estimate of first-quarter GDP growth. The first look at second-quarter economic growth is due July 30.

Business

Baghdad Urges OPEC to Raise Iraq's Production Quota

A handout picture released by Iraq's Prime Minister's Press Office on January 2, 2025, shows a partial view of the oil refinery of Baiji north of Baghdad, during the inauguration ceremony of the fourth and fifth units. (Iraq's Prime Minister's Press Office / AFP)
A handout picture released by Iraq's Prime Minister's Press Office on January 2, 2025, shows a partial view of the oil refinery of Baiji north of Baghdad, during the inauguration ceremony of the fourth and fifth units. (Iraq's Prime Minister's Press Office / AFP)
TT
TT

Baghdad Urges OPEC to Raise Iraq's Production Quota

A handout picture released by Iraq's Prime Minister's Press Office on January 2, 2025, shows a partial view of the oil refinery of Baiji north of Baghdad, during the inauguration ceremony of the fourth and fifth units. (Iraq's Prime Minister's Press Office / AFP)
A handout picture released by Iraq's Prime Minister's Press Office on January 2, 2025, shows a partial view of the oil refinery of Baiji north of Baghdad, during the inauguration ceremony of the fourth and fifth units. (Iraq's Prime Minister's Press Office / AFP)

Baghdad has urged OPEC to increase Iraq's oil production quota, taking into account the damage done to its industry by its history of conflicts and the recent regional war, its oil ministry said Thursday.

Like other oil producers, Iraq, a founding member of OPEC, was greatly affected by the Middle East war, as it is hugely dependent on oil exports, which make up about 90 percent of its budget revenues.

Iraq's oil ministry said that reassessing production baselines was important "to ensure they are aligned with the sustainable production capacities of member countries", and with respect to "Iraq's unique security and economic circumstances".

OPEC has "responded by launching a process to reassess" its member states' capacities, the ministry said.

Following reports of a possible Iraqi exit from OPEC, oil ministry spokesperson Salim al-Rikabi told AFP that Iraq "has no intention of withdrawing from the organization and remains committed to its mechanisms".

But he added that the cartel "has to raise Iraq's production quota. Otherwise, a decision will have to be made about whether to stay or leave the organization".

Iraq has started increasing its production "in line with its capacities and needs", he said.

The ministry said that "reports suggesting that Iraq is considering ending its membership in OPEC do not reflect" the government's position.

Iraq's ministry said that any change would be decided within OPEC's existing framework, but noted there was a "high level of understanding" among members regarding Iraq's situation after decades of wars, sanctions, and recent attacks on the sector during the Middle East War.

All of these challenges will be considered to "ensure that Iraqi oil production reaches a fair level".

The Middle East war and Iran's blockade of the Strait of Hormuz choked off shipments and prompted production cuts in key oil-producing countries including Iraq, shaking world energy markets.

During the conflict, several Iraqi oil fields were struck by drones mostly launched by pro-Iran armed groups.

Before the war, Iraq produced around four million barrels per day (bpd), and exported an average of 3.5 million bpd, mostly via Hormuz.

After the recent deal between Washington and Tehran to end the fighting, Iraq now hopes to return within two months to its previous production levels.

A former oil ministry official, who requested anonymity, warned against Iraq's exit from OPEC.

A "withdrawal would not serve the interests of Iraq", which is exclusively dependent on the oil sector, he said.

"I don't think that Iraq has really the incentives to leave OPEC," said Jorge Leon, an analyst at Rystad Energy.

Instead, he added, Iraq might be trying to apply pressure to "the capacity review exercise that the group is currently doing", which will serve as the basis for the 2027 quota.

Business

Egypt Overhauls Nitrogen Fertilizer Export Levy, Exempts High-grade Ammonium Nitrate

General view of part of Cairo (Reuters)
General view of part of Cairo (Reuters)
TT
TT

Egypt Overhauls Nitrogen Fertilizer Export Levy, Exempts High-grade Ammonium Nitrate

General view of part of Cairo (Reuters)
General view of part of Cairo (Reuters)

Egypt has revamped its export tax regime for nitrogen fertilizers, replacing a fixed export tax with a 10% ad valorem duty on all nitrogenous fertilizer exports, while exempting high-purity ammonium nitrate, according to a decision published in the Official Gazette on Thursday.

The duty, calculated on the FOB invoice value, does not apply to pure ammonium nitrate with a nitrogen concentration exceeding 34.2%, or to shipments destined for productive enterprises in Egypt's free zones, Reuters reported.

The World Bank warned in its April Commodity Markets Outlook that global fertilizer prices could rise by more than 30% in 2026 due to conflict-related disruptions in the Middle East and logistical risks around the Strait of Hormuz.

The new decree replaces a flat $90-per-metric-ton tax introduced in May, tying the levy more directly to prevailing export prices, which have fallen since peaking in mid-April.
Egypt is the world's seventh-largest exporter of nitrogen fertilizers, according to LSEG data.