Crude oil prices fall on prospects of US-Iran talks

Global crude oil prices declined sharply on Wednesday as market sentiment shifted following reports of potential negotiations between the United States and Iran, raising expectations of increased oil supply in the international market.

According to market data, crude oil prices fell by around 2 per cent as investors reacted to the possibility of renewed diplomatic engagement between the two countries. Analysts say the prospect of easing geopolitical tensions and a potential return of Iranian oil exports weighed on prices.

Brent crude, the international benchmark, dropped 2.07 per cent to $68.02 per barrel, while US West Texas Intermediate (WTI) crude declined 2.06 per cent to $63.80 per barrel.

The downturn in oil prices followed a broader shift in commodity markets, with prices retreating after recent gains in gold. Market participants adjusted their positions amid expectations of changing supply dynamics and reduced risk premiums.

It is worth noting that oil prices had edged higher in the previous trading session; however, the latest developments surrounding possible US-Iran negotiations reversed the upward trend, pushing energy markets into negative territory.

Industry experts say further clarity on diplomatic progress and official policy signals will remain key drivers of oil price movements in the coming days.