Oil prices retreat as optimism over a potential US-Iran deal raises expectations of increased global supply.
West Texas Intermediate crude fell to $98.20 in early European trading Thursday, extending losses below $98.50. The decline follows remarks from US officials indicating progress in negotiations with Iran, which could lead to the lifting of sanctions and a boost in Iranian oil exports.
Prices had stabilized near $98.50 in the previous session, supported by tight global supply. Analysts had expected a modest rebound, but geopolitical developments overshadowed fundamentals. A similar dip occurred in June when talks between the two nations showed signs of progress.
Markets are monitoring the situation closely, with traders pricing in potential supply shifts if a deal materializes.