(RTTNews) – Oil extended declines to hit their lowest levels in more than a week on Tuesday after U.S. President Donald Trump said the U.S. was having “good talks” with Iran, raising optimism over the prospects for a negotiated peace deal.
Brent crude futures fell nearly 3 percent to trade below $86 a barrel, marking a third consecutive session of losses.
WTI crude futures were down 2.3 percent at $80.69, after having tumbled more than 7 percent in the previous session as hopes of a diplomatic breakthrough between the United States and Iran helped ease concerns over supply disruptions to global energy supplies.
Trump told Axios that he chose to suspend strikes on Iran in order to give negotiations another chance, stressing that he could order a return to expanded military operations if diplomacy fails.
It was said that the talks are being conducted mainly between Iran and Oman, but Qatar, Pakistan, Egypt and Trump’s envoys, Steve Witkoff and Jared Kushner, are also actively involved.
Tehran also ceased retaliatory strikes against U.S. bases in neighboring countries while Kazakhstan resumed crude oil exports through the Caspian Pipeline Consortium terminal that had been disrupted by Ukrainian drone attacks.
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