Oil Prices Decline Again Amid Signs of Thaw Between Washington and Tehran and Strong Dollar Pressures Markets

Oil prices recorded a decline for the second consecutive day on Tuesday, as markets awaited the possibility of easing tensions between the United States and Iran, alongside the impact of the rising US dollar which increased pressure on global crude prices.

Trading Numbers: Brent and West Texas Record New Losses

Brent crude futures fell by 0.5% to reach $65.91 per barrel at 03:30 GMT. Similarly, West Texas Intermediate crude also declined by the same percentage to record $61.83 per barrel, continuing the downward trend that began during yesterday's session.

Political Statements Cast Shadows Over the Market

This decline followed a sharp drop of over 4% in oil prices during trading on Monday, after statements from US President Donald Trump indicated that Iran was engaged in "serious" talks with Washington, which bolstered expectations of easing tensions with the OPEC member state.

In this context, sources from both the US and Iranian sides revealed expectations to resume nuclear talks next Friday in Turkey, a step that could pave the way for a new agreement that alleviates geopolitical tensions in the region.

US Warnings Increase Anticipation

Despite signs of thaw, Trump warned that the movement of large US warships towards Iran could lead to "serious consequences" if diplomatic efforts fail, keeping markets in a state of caution and anticipation regarding the course of political developments.

Market Fluctuations Driven More by Sentiment than Fundamentals

For her part, the chief market analyst at "Philip Nova", Priyanka Sachdeva, explained that the sharp movements seen in oil prices during recent sessions reflect the market's sensitivity to psychological factors and investor sentiment more than actual changes in supply and demand fundamentals.

She added that the gains recorded by the markets last week quickly receded with the rise in volatility of high-risk assets, noting that the absence of any new geopolitical escalation, along with the divergence in macroeconomic data, contributed to oil's failure to maintain its gains.