Oil prices slide as US-Iran peace talks ease supply fears

Oil prices continued their downward trajectory on Wednesday, 4 November, as traders reduced geopolitical risk premiums amid signs of diplomatic progress between the United States and Iran. Market data as of 8:09 AM in Tokyo showed West Texas Intermediate (WTI) trading at $95.60, a 0.89% decline, while Brent crude fell 1.68% to $103.00. Mediation efforts drive market retreat The price slump follows a significant sell-off earlier in the week, where Brent settled 7.63% lower at $104.77 and WTI dropped 7.36% to $96.46. The market reaction is primarily driven by Qatar-mediated negotiations aimed at stabilising Middle Eastern exports and improving shipping access through critical maritime corridors. UAE’s Murban crude also saw a decline, trading at $102.20 per barrel, down 2.98%. A key trigger for the sentiment shift was a statement from Iranian President Masoud Pezeshkian, indicating that Supreme Leader Mojtaba Khamenei had authorised the government to pursue peace talks. While Qatar officials stated that both parties remain committed to mediation, a senior Iranian official cautioned that a final agreement remains distant, leaving the market vulnerable to sudden reversals if negotiations stall. Supply risks persist despite price drop Despite the current slide, natural gas prices moved in the opposite direction, rising 1.16% to 2.889. The disparity reflects ongoing concerns regarding physical supply disruptions linked to conflicts in both the Middle East and Ukraine. While the…