US-Iran Diplomacy Efforts Weigh on Oil Prices

Oil prices fell on Thursday after rising by 4% in the previous session due to renewed US-Iran diplomacy efforts. Despite Iran's openness to negotiations, the two countries remain far apart on how to end their war.

Brent crude futures declined by $1.92 (0.9%) to $102.16 a barrel at 0400 GMT, while West Texas Intermediate futures eased $1.77 (0.8%) to $91.39.

A senior Iranian official told Reuters that Tehran was reviewing Washington's response to its peace proposals, which prioritize lifting the US naval blockade on Iranian ports and reopening the Strait of Hormuz.

Priyanka Sachdeva, head of market insights at Phillip Nova, said oil prices are falling due to a decrease in geopolitical risk premium as Gulf supply recovers and hopes for a diplomatic breakthrough grow.