Crude oil prices retreated from early session highs on Monday, wiping out gains that had followed comments from Iranian officials regarding ongoing diplomatic talks with the United States.
The reversal underscores the market's sensitivity to any signal that a near-term resolution to geopolitical tensions remains elusive.
Esmail Baghaei, spokesperson for Iran's Ministry of Foreign Affairs, stated that negotiations with Washington have not yielded meaningful progress.
The remark dashed hopes among traders for a temporary de-escalation that might have eased supply concerns.
Instead, the comment reinforced the prevailing view that diplomatic channels remain blocked, leaving the risk premium embedded in energy prices largely intact.
Brent crude and West Texas Intermediate (WTI) both opened higher, buoyed by speculative buying on the prospect of renewed dialogue.