Global oil prices have fallen amid growing optimism that tensions between Iran and the United States could ease, easing fears of major supply disruptions in the energy market.

Traders said the decline reflects increased expectations that diplomatic efforts between both countries may help reduce conflict risks in the Middle East, a region critical to global oil supply routes.

The Strait of Hormuz, a key shipping channel for global crude exports, has remained a major focus for investors due to fears that any escalation could disrupt supply and drive prices higher.

However, recent signals of possible progress in negotiations have helped reduce the “risk premium” previously built into oil prices, leading to a drop in both Brent crude and West Texas Intermediate (WTI) benchmarks.

Analysts note that oil markets remain highly sensitive to geopolitical developments, with prices shifting quickly based on news of either conflict escalation or peace talks.

Despite the recent decline, experts warn that uncertainty remains high, and any breakdown in talks could quickly reverse the downward trend.

For now, investors are closely watching developments between Washington and Tehran, as well as security conditions around key shipping routes that influence global energy stability.