Oil Prices Slide Further as Traders Bet on US-Iran Peace Talks

Oil prices extended losses on Tuesday morning as investors remained hopeful that diplomatic talks between the United States and Iran will end the Middle East conflict. Brent crude fell 1.31% to $91.36 a barrel. West Texas Intermediate, the main US contract, dropped 1.59% to $85.47 a barrel.

Both benchmarks have lost around 20% this month. Traders are betting on a resolution to the seven-month-old conflict, which has sent inflation soaring and forced central banks to hike interest rates.

Trump Reports Positive Momentum

US President Donald Trump said on Monday there was "positive momentum" toward ending the war after meeting Qatar's prime minister at the White House. In a post on Truth Social, Trump said: "I had an excellent conversation with Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani." He added that "much was discussed with respect to the Islamic Republic of Iran".

Expectations had grown ahead of last week's midterms that Trump would resume strikes on Iran this month. He has talked down such a move while leaving the door open to military action.

Strikes Still on the Table

In his Monday post, Trump reiterated that the United States was "locked and loaded". But he said he believed further strikes were "quite unlikely" because key US allies in the Gulf "would prefer the status quo".

His comments echoed early statements to CNN over the weekend, when he said it was "highly unlikely" fighting would resume.

What It Means for Markets

The drop in crude prices reflects growing optimism that a diplomatic path could reduce supply risks. For Nigeria, lower oil prices are a concern because crude earnings support government revenue and dollar supply. A sustained fall can weaken the naira and strain public finances.