ICE Brent futures fell more than 7% as markets priced in potential US-Iran negotiations despite Iranian denials and geopolitical risks.
Oil prices tumbled sharply as optimism grew over a possible US-Iran deal, with ICE Brent settling over 7% lower. The selloff followed reports that President Trump halted military strikes, fueling hopes of revived negotiations.
Despite the rally in sentiment, Iranian officials denied ongoing talks, and security risks in the Strait of Hormuz and Black Sea persist. Analysts cautioned the reaction may be overdone given lingering uncertainty and threats of escalation.
European gas markets also weakened, though storage levels and demand dynamics remain more stable than in 2021. Kazakh oil loadings in the Black Sea resumed after disruptions from Ukrainian attacks on Russian infrastructure.