Crude prices rebound modestly as traders reassess supply risks following a 3% decline on eased Middle East tensions.
Oil prices recovered marginally in early trading after falling nearly 3% on reports of progress in US-Iran diplomatic talks. The decline followed speculation that a potential deal could ease sanctions and boost Iranian crude exports, adding supply to an already well-supplied market.
Prior to the drop, Brent crude had traded near $85 per barrel, supported by OPEC+ production cuts and summer demand expectations. Analysts noted that any relaxation of sanctions could release an additional 1-2 million barrels per day into global markets, pressuring prices further.
Markets remain cautious as details of the negotiations remain unclear, with traders balancing geopolitical risks against fundamentals.