Oil Prices Decline Amid Easing Tensions Between U.S. and Iran and Strong Dollar

Oil prices have decreased for the second consecutive day on Tuesday, as markets anticipate a potential easing of tensions between the United States and Iran, alongside the strengthening of the U.S. dollar which is exerting pressure on global crude prices.

Trading Figures: Brent and West Texas See Further Losses

Brent crude futures dropped by 0.5% to $65.91 a barrel at 03:30 GMT. West Texas Intermediate crude also fell similarly, settling at $61.83 a barrel, continuing the downward trend initiated in the previous session.

Political Statements Impact Market

This decline follows a significant drop of over 4% in oil prices during Monday's trading, triggered by remarks from U.S. President Donald Trump indicating that Iran is engaged in "serious" discussions with Washington, which has heightened expectations for a de-escalation of tensions with the OPEC member nation.

In this context, sources from both the U.S. and Iran have indicated that nuclear negotiations are expected to resume next Friday in Turkey, a step that could pave the way for a new agreement aimed at easing geopolitical tensions in the region.

U.S. Warnings Heighten Caution

Despite signs of détente, Trump cautioned that a movement of large U.S. warships toward Iran could lead to "serious consequences" if diplomatic efforts fail, keeping markets in a state of caution and awaiting further political developments.

Market Fluctuations Driven by Sentiment

Priyanka Sachdeva, a market analyst at Philippe Nova, noted that the recent sharp movements in oil prices reflect psychological factors and investor sentiment more than actual changes in supply and demand fundamentals. She added that last week’s market gains quickly diminished as volatility in high-risk assets increased, and the lack of any new geopolitical escalation, along with discrepancies in macroeconomic data, contributed to oil's inability to sustain its gains.