Crude oil prices fell for a second day Tuesday as markets bet the U.S. and Iran will reach a diplomatic deal to end an eight-month conflict disrupting global energy supplies.
West Texas Intermediate futures dropped 63 cents to $95.83 a barrel. Brent crude, the international benchmark, fell $1.59 to $103.18 a barrel. The decline followed reports that Washington and Tehran were making progress toward a settlement.
Oil sold off more than 7% on Monday after both countries signaled openness to talks. President Donald Trump told reporters Tehran wants "to make a deal and that could happen."
Qatar is mediating talks between the two nations, Qatar's foreign ministry said Tuesday. The country held a delegation in Tehran to reach an agreement that ends the conflict and prevents further escalation.
Iran's Foreign Ministry spokesman Emsaeil Baqaei said Tuesday that Tehran will not accept "diplomacy based on coercion," according to state-owned Islamic Republic News Agency.
The situation remains volatile. The U.S. attacked Iran's Qeshm Island on Monday and has carried out "limited strikes" against the country in recent weeks, U.S. officials told The Wall Street Journal. Commercial ships continue to come under attack in the Persian Gulf, Strait of Hormuz, and Gulf of Oman. The United Kingdom Maritime Trade Operations Centre reported at least four ship attacks since the start of the month.
Vice President JD Vance told CNN that he and Trump "both feel really good about the prospect of potentially coming to a negotiated settlement." Secretary of State Marco Rubio said Sunday that Trump would like to resolve the war "diplomatically" and prefers not to use military force.
Crude prices gained more than 10% in October as markets priced in escalation risk following the U.S. midterm elections.