Oil prices steady as Iran reviews US deal to end war

By Scott DiSavino

NEW YORK, June 2 (Reuters) - Oil prices were small changed successful volatile commercialized connected Tuesday arsenic the marketplace waited for quality connected the warfare successful the Middle East arsenic Iran reviewed a projected statement with the United ‌States to halt the war.

Brent futures were up 17 cents oregon 0.2% to $95.15 a tube astatine 10:19 a.m. EDT (1419 GMT), portion ‌U.S. West Texas Intermediate (WTI) crude roseate 5 cents, oregon 0.1% to $92.21. Earlier successful the session, some contracts were down implicit $2.

Iran is reviewing a projected statement with the U.S. to ​halt their warfare but has not communicated with Washington for a fewer days, Iranian media reported connected Tuesday, aft U.S. President Donald Trump said negotiations were ongoing.

"The marketplace is presently focused connected whether there's immoderate factual advancement oregon setbacks successful U.S.-Iran negotiations, the code and substance of statements from some sides (particularly Iran's threats regarding the Strait of Hormuz), and existent carnal tanker movements done the waterway," said Tim Waterer, main marketplace expert astatine KCM ‌Trade.

More than 3 months aft the U.S. and ⁠Israel launched strikes against Iran, the struggle has morphed into a stalemate with the pivotal Strait of Hormuz mostly shut.

Iran has efficaciously halted astir non-Iranian shipping successful and retired of the Gulf since the warfare began, choking ⁠off astir a 5th of planetary lipid and liquefied earthy state flows and driving prices up by 50% oregon more. The U.S. has besides maintained a blockade connected Iranian ports.

The semi-official Fars agency, besides citing a source, said that messages connected the imaginable deal, oregon memorandum of understanding, had stopped a fewer ​days ​ago, with the past 1 being Tehran's "clear message" implicit Lebanon, wherever Iran is ​seeking a halt to Israel's incursion against its state ‌Hezbollah.

Trump said connected Monday that negotiations were continuing and determination would beryllium a woody implicit the adjacent week to widen a ceasefire agreed to successful aboriginal April and reopen the strait.

Israel, meanwhile, kept up strikes connected confederate Lebanon connected Tuesday, pressing its run against Hezbollah a time aft Trump asked Israeli Prime Minister Benjamin Netanyahu not to onslaught Beirut to avert further escalation successful the three-month-old war.

GLOBAL STOCKPILES FALLING

Global lipid inventories could deed captious oregon historically debased levels conscionable up of the highest summertime request play if banal draws proceed astatine their existent pace, the caput ‌of the International Energy Agency's lipid manufacture and markets part said connected Tuesday.

An ​executive from Abu Dhabi's authorities lipid institution besides said connected Tuesday that August could ​mark a tipping constituent for overmuch higher lipid prices if ​demand picks up and the Iran warfare proviso situation persists.