Oil holds firm Iran agreement lifts market sentiment

June 23, 2026 (MLN): Oil prices edged slightly higher in early Tuesday trade, swinging between gains and losses as markets weighed cautious optimism over a possible easing of tensions in the Middle East.

Currently, Brent crude futures is down by $0.95, or 1.22%, to $76.95 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $0.79, or 1.07%, to $73.07 per barrel by [11:10 am] PST.

Sentiment was pressured overnight after the U.S. Treasury issued a 60-day general license allowing the production, transport, and sale of Iranian oil, including permission for Iranian crude exports to the United States with payments settled in U.S. dollars. The authorization is set to expire on August 21.

Despite the move, concerns persisted that Iran could redirect oil revenues toward rebuilding its military capabilities.

Speaking at a White House executive order signing, U.S. President Donald Trump said Iran was expected to use the funds for civilian needs instead. “They’re supposed to use money to buy food for their people… they’re buying it exclusively from us: corn, soybeans,” he remarked.

Meanwhile, U.S. Vice President JD Vance said negotiations held in Switzerland had made “great progress,” even as Iran over the weekend announced the closure of the Strait of Hormuz.

However, the U.S. Central Command dismissed those claims, stating the passage remained open.

The evolving developments have fueled expectations among investors that a longer-term resolution may be taking shape, helping to support oil market sentiment.

Commenting on the trend, Scott Chronert, managing director of U.S. equity strategy at Citigroup’s Citi Research, told CNBC on “Squawk Box Asia” that market pricing suggests growing confidence in an eventual de-escalation.

“If you follow the oil price trading pattern over the past couple of weeks, the market is telling you we’re increasingly closer to the end of the conflict,” he said.

He added that easing energy pressures could reduce inflation-related risks in the coming weeks and months.

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