Oil prices declined as investors assessed a pause in American strikes targeting Iran. Hopes for diplomatic progress helped ease worries over energy supplies from the Middle East.
Oil prices dropped one percent following reports of a temporary halt in US military actions against Iran. Market participants focused on signs of possible talks between Washington and Tehran.
President Trump described the discussions with Iran as positive while cautioning that strikes could resume if negotiations break down. Analysts pointed to lower shipping traffic in key straits and weaker demand in Asia as additional factors weighing on prices.
US crude oil and gasoline stockpiles were expected to have declined in the prior week, according to preliminary assessments.
