Brent crude prices slipped into negative territory in early European trading on Tuesday, reversing a strong weekly start as diplomatic signals from Tehran suggested a potential de-escalation in tensions with the United States.
Iranian Foreign Minister Esmail Baghaei indicated openness to negotiations with Washington, a development that has quickly dampened the risk premium embedded in energy markets.
The shift in tone follows a period of heightened geopolitical anxiety that had previously supported higher oil valuations.
This latest signal builds on earlier reports of progress in peace talks between US and Iranian officials, which had already triggered a retreat in global oil prices on Monday.
Traders appear to be pricing in a reduced probability of immediate supply shocks, with the market focus shifting from conflict risk to the potential for a diplomatic resolution.
The reversal underscores the sensitivity of energy markets to geopolitical headlines.