President Trump suggests a possible Iran agreement, easing geopolitical tensions and weighing on crude futures.
Oil futures declined after President Trump indicated a good chance of reaching a nuclear deal with Iran, delaying a planned military strike. The move followed requests from Saudi Arabia, Qatar, and the UAE, who believe an agreement is near.
Prices had been supported by Middle East tensions, but optimism over a diplomatic resolution reduced risk premiums. Earlier sessions saw volatility amid escalating rhetoric, though no physical supply disruptions were reported.
Markets reacted swiftly to the shift in tone, with crude benchmarks retreating from recent highs. Analysts noted that a deal could ease supply concerns, though enforcement remains uncertain.