Global oil prices fell sharply on Tuesday. Brent crude dropped below $98 per barrel, while WTI crude fell to near $97. This decline reverses a previous price spike caused by the collapse of peace talks and a U.S. naval blockade of Iranian ports.
Market sentiment improved on renewed optimism for diplomatic de-escalation between the U.S. and Iran. Both nations are reportedly considering a second round of negotiations before the current temporary ceasefire expires.
President Donald Trump stated that Iran contacted his administration to negotiate a deal. This announcement eased immediate fears of prolonged supply disruptions in the Strait of Hormuz.