Oil prices slide as US-Iran peace talks ease Gulf supply fears

Oil prices fell on Tuesday as hopes for US-Iran peace talks outweighed fresh supply concerns, with Brent crude dropping 1.68% to $103.00 and WTI sliding 0.89% to $95.60 per barrel. Qatar-mediated negotiations raised expectations that diplomacy could ease the US-Israel-Iran conflict and restore Gulf shipping access, despite ongoing attacks and unresolved differences keeping markets vulnerable to reversals. Brent settled 7.63% lower on Monday, while analysts noted Iranian President Masoud Pezeshkian's statement that Supreme Leader Mojtaba Khamenei had authorized peace talks. A senior Iranian official said both countries remained "far" from an agreement, and fresh supply-disruption concerns from attacks linked to the Iran and Ukraine wars persist. A failed negotiation or renewed escalation could quickly restore the geopolitical risk premium, as lower prices do not confirm shipping routes are safe.