Brent settles near $99 as Trump calls Iran talks "productive"

Wall Street also looks ahead to the Trump-Xi summit on trade and AI, even as Iran hardens its terms for reopening the Strait of Hormuz.

Brent crude settled near $99 on Tuesday after President Trump described talks between the United States and Iran as "very productive" and said there was "a lot of momentum" toward a deal.

Trump said Steve Witkoff and Jared Kushner had a productive meeting with Iran's mediators and that he expects a positive response. He said he thinks the two men will get the Iran deal finished, and that a conflict with Iran could end after the midterm elections, or possibly sooner.

But Iran has hardened its conditions for reopening the Strait of Hormuz even as both sides describe continued contact. In a meeting with Witkoff, Iran's Araghchi set out terms that include lifting a naval blockade, releasing frozen assets, and ending regional conflicts. Trump has said the United States is helping restore oil flow through the strait, even as Iran keeps those conditions in place.

The diplomacy runs alongside military warnings. Trump said there is no sign of activity at Pickaxe Mountain in Iran but that the U.S. would strike if it appears, and separately warned a strike may still come, saying it may soon be too late. Iran's Revolutionary Guard has said the country will defend itself if the U.S. strikes the site.

The $99 settlement reflects only modest relief from the de-escalation talk. Trump's record on Iran negotiations, together with his own threats to strike Iranian targets, suggests the market is pricing in limited conviction that a deal gets done. Traders are also looking to the Trump-Xi summit on trade, artificial intelligence and other contentious issues, a meeting that carries its own binary risk and could overshadow any progress on Iran.