Oil prices dropped 5% to $65/bbl as U.S.-Iran diplomacy eased Middle East tensions.

Oil prices fell 5% to $65 per barrel for Brent Crude as diplomatic progress between the U.S. and Iran eased fears of conflict in the Middle East. Reduced tensions, including indirect talks and a cooling of rhetoric, led investors to lower risk premiums, driving down crude futures. While no formal agreement has been reached, the shift in tone has temporarily alleviated concerns over supply disruptions in key shipping routes like the Strait of Hormuz. Markets remain sensitive to regional instability, but current developments have prompted a broad correction in energy prices.