Diplomacy Cools Oil Prices, Reduces Supply Fears

West Texas Intermediate (WTI) crude oil prices dipped below $81.50 per barrel as diplomatic efforts in the Middle East reduced concerns about supply disruptions.

The recent surge in WTI prices had been driven by escalating tensions in the region, but renewed engagement between key players has trimmed the premium for geopolitical risk.

While analysts note that underlying tensions remain unresolved, traders are cautiously optimistic about a more stable supply outlook. Inventory data and global demand forecasts continue to influence price direction.

A sustained drop in oil prices could ease inflationary pressures and potentially impact central bank policy decisions.