Global oil prices extended losses on renewed hopes of easing tensions in the Middle East, as diplomatic signals between the United States and Iran reduced fears of prolonged supply disruptions.
As at the time of writing 07:29 pm (WAT), Brent crude traded at $102.8 per barrel, down 2.12%, while WTI crude fell to $96.61 per barrel, shedding 1.68%, as markets reacted to signs of diplomatic progress and improving supply flows.
The decline followed comments by U.S. President Donald Trump, who suggested the Iran conflict may be approaching a resolution.
“We’re in the final stages of Iran, we’ll see what happens,” Trump told White House reporters.
“We’ll either have a deal or we’re going to do some things that are a little bit nasty. But hopefully that won’t happen,” he added.
Market sentiment was further supported after oil shipments resumed movement through the Strait of Hormuz, a critical global energy chokepoint. Reports showed multiple supertankers carrying crude successfully navigating the route, easing concerns over immediate disruptions to global supply chains.
Beyond geopolitical developments, rising crude production from major producers, including the U.S. and some OPEC+ members, also contributed to downward price pressure, shifting market attention from supply scarcity toward possible oversupply risks.
Additional pressure came from U.S. Strategic Petroleum Reserve releases, which injected extra barrels into the market and helped contain sharp upward price swings.
At the same time, persistent uncertainty surrounding the global economy and softer industrial demand signals from key importing nations tempered bullish sentiment, reinforcing expectations of a more balanced and potentially weaker demand outlook.
Despite the pullback, analysts caution that oil markets remain highly sensitive to developments surrounding Iran and the Strait of Hormuz, noting that any breakdown in negotiations or renewed disruption to regional energy flows could quickly reverse the current price trend.