Dubai: Oil prices fell sharply in early Asian trade on Monday after former US President Donald Trump said he was hopeful about reaching a deal with Iran, easing market concerns over potential conflict in the oil-rich Middle East.
Benchmark crude prices declined by more than three per cent following the remarks. West Texas Intermediate (WTI) dropped 3.4 per cent to $62.99 a barrel, while Brent crude fell 3.2 per cent to $67.09 a barrel.
The decline reflects shifting investor sentiment after weeks of geopolitical tension had supported higher oil prices. Markets reacted quickly to the prospect of renewed diplomatic engagement between the United States and Iran, which could reduce risks to oil supply from the region.
Traders said the comments prompted fresh selling, with expectations that any easing of tensions could limit supply disruptions and stabilize exports. Oil markets have remained highly sensitive to political developments involving Iran, a major producer within the Organization of the Petroleum Exporting Countries (OPEC).
Analysts noted that while the immediate reaction was sharp, future price direction would depend on whether diplomatic progress materialises and how global demand conditions evolve in the coming weeks.
