Oil Prices Plunge Over 4% as US-Iran Diplomacy Eases Supply Fears
Crude markets witnessed a sharp selloff as geopolitical tensions showed signs of thawing. Brent futures tumbled 4.6% to $66.10 while WTI dropped 4.7% to $60.92 during Asian hours, erasing last week's six-month highs.
The retreat followed President Trump's confirmation of serious negotiations with Iran, reducing the risk premium baked into oil prices. Market participants swiftly recalibrated their positions as the specter of Middle East supply disruptions faded.
OPEC+ maintained production discipline, keeping output unchanged for March. The cartel's decision to pause increases, first implemented in November, provided no counterbalance to the bearish sentiment.
A strengthening dollar and profit-taking exacerbated the downward pressure. Traders unwound long positions after the diplomatic developments undercut the previous week's bullish momentum.
