Global crude oil prices fell after talks between the United States and Iran eased concerns over potential disruptions to oil supplies from the Middle East.
The diplomatic engagement raised hopes that tensions between the two countries could be reduced, improving stability in global energy markets.
Brent crude and US West Texas Intermediate (WTI) both recorded losses as traders reacted positively to the prospect of increased oil availability.
Investors believe improved relations could allow more Iranian crude to reach international markets, boosting global supply.
Analysts, however, warned that geopolitical risks in the Middle East remain a key factor for oil markets.
While the talks have improved confidence among investors, future price movements will depend on the outcome of ongoing negotiations and regional security developments.