Global oil markets showed signs of easing as renewed diplomatic momentum between the United States and Iran began to influence trader sentiment.
After surging more than two percent earlier in the session, international benchmark Brent crude reversed course, slipping by 0.5 percent to around $104.57 per barrel. Meanwhile, US benchmark West Texas Intermediate (WTI) fell more sharply, declining 1.1 percent to $94.80 per barrel.
The pullback comes amid growing expectations of fresh peace talks aimed at ending the conflict, with Iran’s foreign minister expected in Islamabad. Market participants appear to be pricing in the possibility that renewed dialogue could reduce risks to global oil supply, particularly in the volatile Strait of Hormuz region.
Recent reports indicate that oil prices initially climbed on fears of escalating tensions and supply disruptions, but quickly turned lower as diplomatic signals emerged.
Analysts note that even the prospect of negotiations can significantly impact energy markets, as traders reassess the likelihood of prolonged disruptions. The Strait of Hormuz, a critical artery for global oil shipments, remains central to these concerns, with any easing of tensions potentially stabilizing flows.
Despite the latest dip, volatility remains high. Oil prices have seen sharp swings throughout the conflict, driven by alternating signals of escalation and de-escalation. Market watchers warn that any breakdown in talks could quickly push prices higher again.
For now, however, diplomacy appears to be offering temporary relief to global markets, with investors closely watching developments in Islamabad.
