Oil prices drop as Trump signals progress in Iran talks

WASHINGTON: Global oil prices fell sharply after U.S. President Donald Trump expressed optimism over progress in negotiations with Iran, easing investor concerns over potential supply disruptions.

International media reported that Brent crude dropped more than 5%, falling to around $105 per barrel, while U.S. West Texas Intermediate also recorded a noticeable decline.

Speaking to reporters on Wednesday, Trump said talks with Iran were in their final stages and voiced hope that an agreement could soon be reached. His remarks helped calm market sentiment and reduced pressure on global energy prices.

However, analysts warned that geopolitical risks in the Middle East remain elevated, particularly around the Strait of Hormuz, a critical route for global oil shipments. Any disruption in maritime traffic through the chokepoint continues to pose a major risk to supply stability.

Financial institutions cautioned that failure in negotiations or renewed military escalation in the region could push oil prices back toward $120 to $200 per barrel.

Despite the recent decline, volatility in global energy markets has persisted throughout the year due to ongoing tensions involving Iran and broader Middle East uncertainty.