Oil slipped below $95 a barrel as U.S. stock futures held steady in early European trade, spurred by fresh optimism around U.S.–Iran diplomacy. President Donald Trump hinted at a second round of talks with Tehran, telling Fox Business the conflict was “very close to over.” The dollar stayed flat while sovereign yields eased in both markets, as risk sentiment improves in the euro‑zone.

Brent slid 0.1% to $94.70 a barrel and WTI fell 0.4% to $90.88, reflecting a narrowing risk premium on the front month curve. Analysts at Goldman Sachs said the cease‑fire announcement has lowered perceived near‑term peace‑deal odds, easing price pressure for traders. Yet Hormuz traffic remains muted and the U.S. blockade still threatens supply in the coming days.

Supply constraints appear less severe than feared, thanks to larger-than‑expected storage capacity on land and at sea, according to the bank. Investors will eye Wednesday’s Federal Reserve Beige Book for clues on how the Middle East flare‑up is affecting U.S. firms. Market participants now price oil with a modest discount, anchoring near‑term outlook in the near term for global markets.