Oil prices fell sharply after President Donald Trump stated that a final determination on Iran is imminent.
The president said the U.S. is close to reaching a deal with Iran, signaling potential relief for global oil markets.
Markets reacted quickly, as lower geopolitical risk often reduces crude oil price premiums.
Iran holds some of the world’s largest oil reserves, and any agreement could bring more supply online.
Increased Iranian exports would further ease supply constraints that have supported higher prices.
Traders and analysts now await clear details on any potential agreement and its timeline.
The drop in oil prices reflects cautious optimism for a diplomatic resolution.
Investors remain watchful, as negotiations remain uncertain and could still break down.
For now, markets are pricing in the possibility of additional supply reaching global markets.
