Oil prices fell on Thursday after Iran signalled that it remained open to diplomacy to end its conflict with the United States.
Brent crude futures dropped 94 cents, or 0.9%, to $102.13 a barrel. West Texas Intermediate fell 59 cents, or 0.7%, to $91.56.
The decline followed a sharp four percent increase in oil prices during the previous session.
Iran’s Position Eases Market Pressure
Markets reacted to signals that diplomatic efforts could help reduce tensions between Iran and the United States.
Oil prices had risen sharply as concerns grew over disruptions to energy supplies from the Middle East.
The Strait of Hormuz remains a key focus for energy markets because it is a major route for global oil and gas shipments.
Asian Markets Show Mixed Reaction
Asian stock markets traded unevenly as investors watched a planned meeting between US President Donald Trump and Chinese President Xi Jinping.
The talks are expected to cover trade, artificial intelligence and the Middle East conflict.
US Treasury Secretary Scott Bessent also said Washington and Beijing had agreed to extend their trade truce by two months. The agreement will now continue until January 10.
Japan’s Nikkei gained 1.6% after reopening following a three-day holiday. Hong Kong and Shanghai markets moved lower.
US-China Talks Keep Investors Focused
The Iran conflict is also expected to feature in discussions between Trump and Xi.
Investors are watching for signs of cooperation between the two countries. They are also monitoring rising bond yields and inflation risks.
The US 10-year Treasury yield climbed to 5.11%, its highest level since 2007.
