Crude oil prices fell sharply in Monday trading as investors reacted to fresh signals that a diplomatic resolution between the United States and Iran is within reach.
The sell-off accelerated the unwind of the geopolitical risk premium that has propped up energy markets following recent tensions over the Strait of Hormuz.
The remarks, reported by Axios and Bloomberg, mark a shift in tone from earlier weeks when the prospect of military escalation had driven Brent crude to multi-month highs.
President Donald Trump stated that negotiations with Tehran are "proceeding nicely" and suggested a deal appears closer.
The remarks, reported by Axios and Bloomberg, mark a shift in tone from earlier weeks when the prospect of military escalation had driven Brent crude to multi-month highs.
Markets are now pricing in a lower probability of sustained shipping disruptions in the Persian Gulf.
The decline follows a framework agreement announced by the White House on Friday, which laid out preliminary terms for de-escalation.