Global crude oil prices declined in early Thursday trading following reports that indirect talks between the United States and Iran in Doha had concluded with "positive progress." The diplomatic development, confirmed by Qatari officials, focused on de-escalating tensions around the Strait of Hormuz, a critical chokepoint through which approximately one-fifth of global oil flows.
The market reaction reflected a rapid unwinding of the risk premium that had supported energy prices in recent sessions.
Investors, who had previously priced in heightened geopolitical risk following a weekend of missile exchanges between the two nations, shifted focus toward the prospect of renewed diplomatic engagement.
The sell-off marks a significant reversal in sentiment, with crude sliding back toward levels last seen before the outbreak of the Iran conflict.
This development follows a broader trend of easing tensions in the region.
Oil prices had already fallen on Tuesday as markets began to digest the potential for a diplomatic resolution.