Global oil prices fell more than 1% on Wednesday, sliding to their lowest levels since March as optimism surrounding diplomatic talks between the United States and Iran cooled supply concerns.
The decline followed comments from U.S. President Donald Trump, who stated that negotiations held in Qatar had proceeded well, signaling a potential de-escalation of tensions that have long weighed on energy markets.
Brent crude futures retreated sharply, erasing recent gains driven by geopolitical risk premiums.
The price action reflects a rapid repricing of supply disruption risks, with traders reducing hedges against potential Strait of Hormuz closures or Iranian export curbs.
The move underscores how sensitive energy markets remain to diplomatic signals, with sentiment shifting quickly from risk-on to risk-off as the prospect of a stabilized supply environment grows.
This development follows a period of heightened volatility, with oil prices previously retreating on Monday after initial reports of progress in peace negotiations.