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 in Qatar had gone well, signaling a potential de-escalation of tensions that have long weighed on energy markets.
Brent crude futures retreated sharply in the session, reflecting a rapid repricing of the geopolitical risk premium.
Traders have been pricing in a potential easing of supply constraints, with the market reacting swiftly to the prospect of stabilized shipping routes and reduced threat of disruption in the Strait of Hormuz.
The move marks a significant shift from recent volatility driven by fears of renewed conflict.
The development underscores the sensitivity of energy markets to diplomatic signals.