Oil Prices Ease as Iran Signals Openness to Diplomacy

Oil prices declined on Thursday after rising sharply in the previous session due to concerns over the prolonged disruption of regional oil supplies.

The price drop followed a roughly 4% increase in oil prices during the previous session, with traders reassessing the geopolitical risk premium attached to the conflict between Iran and the US.

An Iranian official told Reuters that diplomatic efforts should continue to end the war, as Tehran reviews Washington's response to proposals for ending the conflict, which include lifting a US naval blockade on Iranian ports and reopening the Strait of Hormuz.

However, Iranian security chief Mohsen Rezaei stated that Tehran would not reopen the strategic waterway unless its conditions were met.