Crude Oil Drops as Iran-US Deal Expectations Rise Globally

ISLAMABAD: (Web Desk) – Global crude oil prices declined by around 3 percent as markets reacted to growing expectations of a potential diplomatic breakthrough between the United States and Iran, easing fears of supply disruptions and reshaping investor sentiment.

Benchmark Brent crude slipped to around the mid-to-high $80s per barrel, while West Texas Intermediate (WTI) also recorded a notable decline. Murban crude followed the same trend, reflecting broad weakness across global energy markets amid easing geopolitical risk perceptions.

The drop in oil prices came after reports that US President Donald Trump suggested that a possible agreement with Iran could be reached in the coming days, raising hopes of reduced tensions in the region.

Financial markets responded positively to the prospect of easing conflict risks, with global equities mostly advancing while energy markets softened as investors reassessed supply outlooks.

Oil Prices Surge Amid Escalating Middle East Tensions

Market analysts noted that sentiment remained cautious, with attention divided between geopolitical developments, inflation data, and expectations around interest rate policy in major economies.

Separately, investors also reacted to developments in the technology sector, including renewed optimism over artificial intelligence-related investments and potential initial public offerings from major tech firms, which supported broader market gains.

Despite volatility, some Asian and European markets recovered after earlier losses, while US indices opened higher amid renewed bargain buying and stabilising sentiment in equities.

Analysts said markets remain sensitive to inflation expectations, with upcoming US consumer price index data expected to influence Federal Reserve policy decisions.

The broader outlook remains mixed, with geopolitical optimism supporting equities, while concerns over inflation and interest rates continue to weigh on long-term investor confidence.