Oil Prices Extend Losses as U.S.-Iran Talks Fuel Hopes of De-escalation

TLDR

• Brent crude fell over 9% in two sessions, dropping from above $100 to around $87 a barrel
• The U.S. suspended air strikes on Iran, with President Trump citing ongoing diplomatic talks
• Shipping through the Strait of Hormuz remains far below normal, with fewer than 10 vessels passing daily
• Iran halted retaliatory attacks after the U.S. pause; China is also reportedly involved in diplomatic efforts
• Analysts warn the ceasefire is unofficial and physical oil flows remain heavily constrained

Oil prices have continued to fall as hopes grow that the U.S. and Iran may reach a diplomatic agreement, reducing fears of a long-term disruption to Middle East oil supplies.

Brent crude dropped more than 9% across two sessions, falling from above $100 a barrel last week to around $87.24 on Tuesday. U.S. West Texas Intermediate also fell sharply, settling at $82.61 on Monday — its lowest level since July 16.

The selloff followed news that President Donald Trump paused U.S. air strikes on Iran over the weekend to allow time for negotiations.

… Continue reading the full article at the original source below.