Oil prices extended their decline on Tuesday as traders remained optimistic about the prospects of a US-Iran peace deal. Brent crude fell 1.31% to $91.36 per barrel, while West Texas Intermediate dropped 1.59% to $85.47 per barrel. Both benchmarks have shed roughly 20% this month as investors anticipate an end to the seven-month conflict that has fueled inflation and prompted central banks to raise interest rates.
US President Donald Trump signaled progress toward resolving the war during a meeting with Qatar's prime minister. In a post on Truth Social, Trump described their discussion as 'excellent' and noted that 'much was discussed with respect to the Islamic Republic of Iran.' While some had expected renewed US strikes on Iran following the midterms, Trump suggested such actions were 'quite unlikely' given the preferences of key Gulf allies.
Trump's comments aligned with his earlier remarks to CNN, where he described the likelihood of resumed fighting as 'highly unlikely.' Despite maintaining that the US was 'locked and loaded,' he emphasized the diplomatic path forward, leaving the door open for further developments.