Brent crude and U.S. West Texas Intermediate futures fell as markets assessed whether U.S.-Iran discussions could ease tensions and eventually increase Iranian oil supplies.
The price decline reflects cautious optimism, not a clear breakthrough. Negotiations remain uncertain, while disagreements over sanctions and Iran’s nuclear program continue to complicate prospects for a broader agreement.
At the same time, regional security concerns are limiting the market’s downside. Any escalation involving shipping routes, energy infrastructure or armed groups linked to the conflict could quickly push prices higher.
Investors are also watching global demand, particularly signs of economic weakness in major consuming countries. Softer consumption forecasts have added pressure to crude prices in recent sessions.
For now, oil markets remain highly sensitive to headlines from both diplomacy and the battlefield. A sustained drop in prices will likely depend on evidence that tensions are easing without a fresh disruption to regional energy supplies.