Oil prices turned lower after an early rally on Monday, as markets reacted to comments from Iran's foreign ministry that were interpreted as leaving the door open to negotiations with the United States. The shift in tone prompted traders to reassess some of the geopolitical risk that had supported crude earlier in the session.
Benchmark oil prices had initially climbed to their highest levels in more than a month. Those gains were linked to worries that tensions could disrupt shipments, a key concern for energy markets whenever the risk to supply routes appears to rise.
As trading progressed, however, the prospect of renewed diplomacy appeared to temper those fears. Even a limited possibility of fresh talks can influence oil sentiment, because it suggests there may still be room to reduce tensions that could otherwise threaten supply flows.
The reversal highlights how sensitive oil markets remain to political developments involving Iran and the U.S. With traders balancing supply concerns against signs of possible negotiations, price moves are likely to stay closely tied to headlines around diplomacy and regional stability.
