Oil prices fell, with WTI at $90, as the market hopes for a second round of negotiations between the US and Iran.

Oil prices fell as President Trump hinted at a possible second round of talks with Tehran this week, despite U.S. forces advancing a naval blockade on Iranian ports. In early European trading, Brent crude fell 0.1% to $94.70 per barrel, while West Texas Intermediate fell 0.4% to $90.88 per barrel. Goldman Sachs analysts said, "Since the ceasefire declaration, the risk premium at the front end of the oil futures curve has decreased as the market sees an increased likelihood of a peace agreement in the near future." Oil supplies through the Strait of Hormuz have not yet recovered, and the U.S. blockade could further squeeze supply. However, Goldman Sachs stated that one factor partially offsetting this pressure is that disruptions in oil production in the Middle East do not seem as severe as expected, thanks to higher-than-expected onshore and offshore storage capacities.