Crude oil prices closed lower on Thursday, reversing earlier gains as markets weighed the prospect of renewed diplomatic engagement against the backdrop of escalating military conflict.
The decline came despite reports of continued US strikes on Iranian targets, suggesting that traders are increasingly pricing in the potential for a negotiated resolution to the crisis.
Brent crude and WTI both retreated in session, with selling pressure broadening across energy complexes.
The move reflects a shift in market sentiment from immediate supply disruption fears to a more nuanced assessment of geopolitical risk.
Investors appear to be betting that diplomatic channels remain open, even as kinetic military actions persist.
Tehran has indicated that it continues to hold negotiations with Oman regarding the administration of the Strait of Hormuz.