Markets interpreted the remarks as a sign that Middle Eastern oil supply disruptions could ease if a deal is reached.
Global financial markets swung between optimism and caution on Thursday as renewed hopes for a peace agreement between the United States and Iran triggered a sharp drop in oil prices and boosted investor sentiment.
Brent crude futures climbed back above $106 per barrel on Thursday morning after tumbling nearly 6% on Wednesday following comments by US President Donald Trump that Washington was in the “final stages” of negotiations with Iran.
Markets interpreted the remarks as a sign that Middle Eastern oil supply disruptions could ease if a deal is reached.
Iran is reportedly reviewing Washington’s latest draft response to its 14-point proposal, with a potential agreement expected to remove naval blockades affecting commercial shipping through the Strait of Hormuz, a key global oil transit route.
