Global crude oil prices declined sharply after signals from Washington regarding Iran talks triggered expectations of a potential nuclear agreement, easing supply concerns in international markets.

Benchmark Brent crude oil fell by 1.36%, settling at $98.13 per barrel. Similarly, West Texas Intermediate (WTI) crude dropped by 1.4%, reaching $93.29 per barrel.

The market reaction came after reports suggested that renewed diplomatic engagement between Iran and the United States could pave the way for easing sanctions and potentially bringing Iranian oil back into global supply chains.

Energy analysts believe that if a nuclear deal is reached, Iran could significantly increase its oil exports, which would help ease tight global supply conditions and reduce pressure on prices.

According to experts, the possible return of Iranian crude to the market may play a key role in stabilizing global energy flows and reducing the risk of further price spikes, especially amid ongoing geopolitical uncertainty.

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However, they also cautioned that oil markets remain highly sensitive to political developments, and any breakdown in talks could quickly reverse the downward trend.

The decline in prices is expected to bring some relief to oil-importing countries, which have been struggling with inflationary pressures due to high energy costs.

Market watchers say traders will closely monitor upcoming diplomatic signals between Tehran and Washington, as they could determine the future direction of global oil prices in the coming weeks.