Oil Prices Slide on Hopes for US-Iran Peace Deal Boost

Oil prices slipped on Tuesday as renewed optimism over a potential US-Iran peace deal raised expectations of increased Iranian crude supply, easing concerns over global supply tightness.

The Brent crude futures dropped by approximately 1.2% to $74.50 per barrel, while West Texas Intermediate (WTI) declined to $70.20.

Market analysts believe that a successful deal could lead to the lifting of sanctions on Iranian oil exports, potentially adding up to 1.5 million barrels per day to global supply.

This prospect has prompted traders to price in a more balanced market, countering previous supply concerns stemming from OPEC+ production cuts and geopolitical tensions in the Middle East.