Oil slides amid hopes for US-Iran de-escalation

June 05, 2026 (MLN): Oil prices fell on Friday after a report indicated that President Donald Trump is reluctant to escalate into full-scale war with Iran despite recent military clashes.

Currently, Brent crude futures are down by $1.69, or 1.74%, to $95.4 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are down by 2.38%, to $93.1 per barrel by [09:44 am] PST.

The White House declined to comment on the report, though an official said Trump "always prefers a diplomatic solution" while warning of consequences should Iran refuse to negotiate, according to CNBC.

Sentiment had soured earlier in the week as Iran backed Hezbollah militants in the country, who have launched missile strikes against Israel.

 However, Israel and Lebanon agreed Wednesday to implement a ceasefire, a development that could help revive US-Iran negotiations, though its durability remains uncertain given that Hezbollah operates independently from the government in Beirut.

Israeli Prime Minister Benjamin Netanyahu said Wednesday that Israel must disarm Hezbollah and demilitarize Lebanon, signaling continued hardline posturing despite the ceasefire agreement.

President Trump is also facing mounting domestic pressure over the conflict.

The House of Representatives passed a resolution Wednesday calling on the president to withdraw US forces or seek congressional authorization to continue military operations.

The measure still requires Senate approval and would almost certainly face a presidential veto.

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