Oil markets moved lower on Tuesday after U.S. President Donald Trump characterized ongoing negotiations with Iran as "very good discussions," signaling a potential breakthrough in the five-month geopolitical standoff.
The remarks, delivered following all-day talks, have intensified market expectations that a diplomatic resolution is imminent, reducing the immediate premium investors have been paying for supply disruption risks in the Middle East.
Brent crude and WTI futures both retreated in the session as traders adjusted their positioning.
The price action reflects a rapid repricing of the geopolitical risk premium that has supported energy prices since the conflict began.
With the Strait of Hormuz remaining a critical chokepoint for global oil flows, any credible signal of de-escalation tends to trigger immediate selling in the complex, as the threat of physical supply constraints recedes.
This development follows a series of optimistic signals from the White House.