Brent crude futures for January delivery declined by approximately 1.5 per cent to $91.18 per barrel, compared with the previous closing price of $92.57.
Similarly, US West Texas Intermediate (WTI) crude futures for December delivery dropped 1.6 per cent to $85.44 per barrel, down from $86.85 recorded at the previous close.
The decline followed comments by US President Donald Trump, who indicated that further military action against Iran was not considered necessary at the moment, although he maintained that Washington was prepared to respond if circumstances changed.
Trump also expressed optimism about the possibility of reaching an agreement with Tehran, suggesting that the ongoing conflict could come to an end soon.
His remarks improved market expectations of reduced geopolitical tensions, easing fears that continued hostilities could disrupt oil shipments through the strategically important Strait of Hormuz.
Oil prices had already recorded significant losses during the previous trading session, with Brent crude falling by more than five per cent.
However, uncertainty remains after Mohsen Rezaei, secretary-general of Iran’s Supreme National Security Council, rejected Trump’s statements and denied reports of ongoing negotiations between Washington and Tehran.
Rezaei also called on the United States to accept seven conditions previously outlined by Iran as part of efforts to address the conflict.
Meanwhile, continued attacks on commercial vessels near the Strait of Hormuz have kept concerns about the security of international energy shipments alive.
Investors are also monitoring planned US-mediated discussions between Russia and Ukraine in Abu Dhabi, hoping that progress could contribute to improved stability in global markets.
Market participants are further awaiting the latest Short-Term Energy Outlook from the US Energy Information Administration for updated projections on global oil production, consumption and prices.
