Oil prices fall as hopes rise for diplomatic breakthrough between the US and Iran

Phillip Nova Head of Market Insights Priyanka Sachdeva stated: "Oil prices are falling because as Gulf supply returns, the hope for a 'U.S.-Iran diplomatic breakthrough' is growing, and the market is relaxing some of its geopolitical risk premium." Sachdeva added that Brent crude oil retains a larger geopolitical and maritime route premium, as international oil is more directly affected by disruptions in the Middle East and Hormuz, while WTI crude oil is influenced more by the relatively insulated U.S. supply.