Speculation over potential US-Iran peace talks weighs on oil prices, pushing WTI 12% below last week’s highs.
West Texas Intermediate crude trades marginally above $80, extending losses as optimism grows over diplomatic progress between the US and Iran. Prices have fallen 12% from last week’s peak amid signs of de-escalation in the Middle East conflict.
Investors reacted to comments from US President Donald Trump, who suggested friendly negotiations were underway, though Iran denied direct talks. A third consecutive day of truce further supported sentiment, while a proposal for voluntary fees in the Strait of Hormuz added to regional stability hopes.
Market focus remains on geopolitical developments, with traders assessing the likelihood of sustained diplomatic efforts reducing supply risks.