Oil prices slide as Trump signals breakthrough in Iran peace talks

Global oil prices declined on Thursday after United States President Donald Trump announced that a potential peace agreement with Iran was nearing completion, easing concerns over a wider conflict in the Middle East.

The development came after days of heightened tensions between Washington and Tehran, which had raised fears of renewed instability in the region and disruptions to global energy supplies.

Following Trump’s remarks, Brent crude, the international benchmark for oil, fell by more than three percent to trade below $90 per barrel, while West Texas Intermediate (WTI) crude also recorded similar losses.

Market analysts attributed the decline to growing optimism that diplomatic efforts could prevent further military escalation and reduce risks to oil shipments through the Strait of Hormuz, a strategic route that handles a significant portion of the world’s crude exports.

Earlier in the day, concerns had intensified after reports of continued exchanges between US and Iranian forces, with Trump initially warning of possible additional military action.

However, the US leader later announced that planned strikes had been suspended, citing progress in negotiations.

In a statement, Trump said discussions had reached the highest levels of Iran’s leadership and that participating countries had agreed on key elements of a potential settlement.

Despite the positive signal, he noted that existing naval restrictions would remain in place until a final agreement is formally concluded.

The prospect of de-escalation brought relief to investors, who have closely monitored developments in the Gulf amid fears that prolonged conflict could threaten global oil supplies and trigger further price volatility.