Oil Prices Slide on Iran Nuclear Deal Hopes and Rising US Crude Stockpiles

Oil prices extended losses in early Asian trading Thursday, pressured by fresh geopolitical developments and a surprise surge in U.S. crude inventories. Brent crude futures for June delivery fell 1.6% to $65.04 per barrel, while West Texas Intermediate (WTI) dropped 1.7% to $61.62, retreating from a two-week high.

The decline followed a report from NBC News indicating Iran is open to a nuclear deal with U.S. President Donald Trump—on the condition that all economic sanctions are lifted. Ali Shamkhani, a senior adviser to Supreme Leader Ayatollah Ali Khamenei, stated Iran is ready to permanently forgo nuclear weapons and accept full international inspections if U.S. sanctions are removed. This marks the clearest sign yet from Tehran’s leadership of willingness to negotiate, although skepticism remains high due to Trump’s continued “maximum pressure” stance and fresh U.S. sanctions targeting Iranian oil shipments to China.

Investor sentiment was further rattled by data from the U.S. Energy Information Administration, which showed an unexpected 3.5 million-barrel increase in commercial crude inventories for the week ending May 9, reaching 441.8 million barrels. Analysts had anticipated a drawdown of 2 million barrels. The surprise build raised concerns about oversupply amid sluggish demand, especially as OPEC+ maintains its aggressive output increases.

The twin pressures of potential geopolitical de-escalation with Iran and signs of a supply glut triggered a sharp market reaction, with both benchmark oil contracts dropping more than $1 per barrel post-report. Traders now eye further signals from U.S.-Iran negotiations and upcoming economic data for direction. As volatility returns, oil markets remain sensitive to both diplomatic headlines and supply-demand imbalances.