Oil prices slide as Iran signals willingness for US diplomatic talks

Crude oil prices retreated in trading on Thursday as Iran signalled a potential shift toward diplomatic engagement with the United States. Brent crude, the international benchmark, fell 0.9 per cent to settle at $102.13 a barrel, reversing some of the previous day's gains when prices had climbed 4 per cent amid heightened regional tensions.

The price movement reflects market sentiment responding to Tehran's reported openness to negotiations on contentious issues, particularly involving the strategically critical Strait of Hormuz. Iran's diplomatic overture came as Washington reviewed Tehran's response to earlier proposals on the waterway, which remains one of the world's most important oil transit routes.

The easing of crude prices may provide some relief to energy-dependent economies across South and Southeast Asia, where fluctuations in global oil costs directly impact fuel prices and inflation. Regional markets have remained sensitive to developments in Middle Eastern geopolitics, with the Strait of Hormuz accounting for approximately one-third of globally traded seaborne petroleum.

Analysts noted that while the latest price decline suggests some market confidence in diplomatic progress, volatility is likely to persist pending concrete developments in negotiations. Oil markets remain vulnerable to any sudden escalation in US-Iran tensions, which could quickly reverse current price trends and reignite regional uncertainty.