Oil Prices Fall on Renewed US-Iran Peace Hopes

Oil prices dropped more than 2.5% on Tuesday as optimism grew over a possible de-escalation between the United States and Iran. President Donald Trump said talks with Tehran were taking place in a “friendly” atmosphere and suggested there was a good chance of reaching a peace agreement, raising hopes that oil supplies from the region could continue smoothly.

Meanwhile, Iran stated that the ongoing US naval blockade represents an “extension of the war.” The developments pushed both WTI and Brent crude prices lower during trading.