Crude oil prices retreated in the session as US Vice President JD Vance indicated that recent diplomatic engagements with Iran have created a viable path toward a final nuclear agreement.
The comments, made following high-level talks in Switzerland, marked a notable shift in tone from Washington and immediately dampened the geopolitical risk premium that has supported energy markets.
Brent crude fell sharply, shedding the gains accumulated during periods of heightened Middle East tension.
The sell-off reflected a rapid repricing of supply disruption risks, as traders adjusted to the prospect of eased sanctions or stabilized shipping routes in the Strait of Hormuz.
Natural gas futures also softened, tracking the broader de-escalation narrative across energy complexes.
Vance stated that the negotiations had laid a "very good foundation" for a successful outcome, signaling that the US administration is moving from confrontation to resolution.