Oil prices retreated today as US-Iran dialogue prospects ease supply concerns. Brent crude fell 1.87% to $97.50 per barrel while WTI dropped 2.27% to $96.83, reversing yesterday's gains when prices surged on news of a US military blockade of Iran's ports. Despite weekend peace talks collapsing in Islamabad, sources indicate negotiations between Washington and Tehran remain active, with President Trump suggesting Iran wants to make a deal. This potential diplomatic breakthrough has reduced immediate supply shock fears. However, analysts warn the oil market faces structural tightness. ANZ estimates roughly 10 million barrels daily have been removed from supply, with a prolonged blockade potentially cutting an additional 3 to 4 million barrels. The International Monetary Fund, World Bank, and International Energy Agency have urged nations to avoid hoarding supplies.
