Oil swings as U.S. Iran talks collapse

June 19, 2026 (MLN): Oil prices traded in a volatile range on Friday as market participants reacted to the collapse of planned U.S.-Iran talks in Switzerland, a development that added fresh uncertainty to already fragile diplomatic efforts aimed at securing a lasting peace agreement.

Currently, Brent crude futures is slightly up by $0.17, or 0.21%, to $80.02 per barrel.

West Texas Intermediate (WTI) crude futures is down by $1.28, or 1.67%, to $77.88 per barrel by [11:56 am] PST.

According to Switzerland’s foreign ministry, scheduled negotiations between the two sides at Bürgenstock did not go ahead as planned, while the White House confirmed that U.S. Vice President JD Vance would no longer travel to Switzerland, citing unresolved logistical complications linked to the talks, according to CNBC.

On the geopolitical front, Vance noted that more than 12 million barrels of oil had moved through the Strait of Hormuz overnight, adding that Iranian forces had refrained from targeting vessels for a second consecutive night.

He described this as a sign that Tehran was, so far, adhering to its commitments.

Meanwhile, OPEC Secretary General Haitham Al Ghais, in an interview with CNBC, dismissed concerns about an imminent peak in global oil demand, stating that the group bases its outlook on real-world fundamentals rather than speculative scenarios.

He also rejected projections from the International Energy Agency suggesting a potential future supply glut.

Crude oil is expected to remain in a relatively tight trading band in the near term, with Brent forecast between $75 and $82 per barrel. Despite recent stability, prices remain about 36% below their peak reached during the height of the conflict.

Cautious sentiment persists in the physical oil market, with major shipping routes yet to fully normalize and elevated insurance costs continuing to signal lingering risk, even as traders monitor whether a broader reopening of maritime flows will materialize.

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