Oil prices retreated as reports of U.S.-Iran ceasefire negotiations overshadowed ongoing geopolitical tensions in the Persian Gulf.
Brent crude dropped to $88.77 per barrel from over $90 after reports emerged of renewed ceasefire talks between the U.S. and Iran. West Texas Intermediate traded at $82.31, reversing earlier gains despite continued missile strikes and U.S. threats of retaliation for troop deaths.
Prices had climbed earlier on supply concerns tied to escalating tensions in the region. Analysts noted the shift followed unconfirmed reports of a potential ten-day ceasefire, which could ease fears of prolonged disruption to oil flows.
Markets showed limited immediate reaction beyond the price pullback, with traders awaiting further details on the negotiations.