Oil prices retreat nearly 4% as traders react to potential easing of US-Iran tensions, reversing prior gains.
West Texas Intermediate crude fell to $88.90 per barrel, down nearly 4% in European trading, erasing over 3% gains from the previous session. The decline follows reports of progress in US-Iran diplomatic talks, reducing geopolitical risk premiums in oil markets.
Prices had climbed earlier on supply concerns, but optimism over a potential easing of sanctions or conflict de-escalation weighed on sentiment. Comparable periods of diplomatic breakthroughs have historically led to short-term price corrections in crude markets.
Traders are closely monitoring further developments, with focus on official statements or policy shifts that could impact supply dynamics.