Oil prices are falling because the market expects the US and Iran to hold talks and the deadline for the ceasefire is approaching.

As the two-week ceasefire agreement is about to expire, the market expects the United States and Iran to hold a second round of talks this week, leading to a drop in oil prices. Analysts at the Dutch International Group stated, "Of course, the goal is to establish a viable de-escalation channel to ensure the long-term and sustained restoration of energy supplies through the Strait of Hormuz." However, "optimism seems to be masking the reality of supply shocks." President Trump warned that if Iran does not reach an agreement, its bridges and power plants would be targeted, and he is "highly unlikely" to extend the ceasefire agreement. Brent crude for June delivery fell 0.3% to $95.25 per barrel, while May WTI futures fell 0.5% to $89.12 per barrel.