Oil fell early in Asian trading as risk‑on sentiment cooled. Front‑month WTI crude slid 0.5% to $101.45 a barrel, while Brent dipped 0.2% to $107.93. The dip follows U.S. President Trump’s lukewarm reaction to Iran’s new peace proposal, which had earlier lifted market mood. Market participants weighed the possibility that a diplomatic thaw could ease supply concerns.

Trump’s comments on Sunday that the United States would start escorting commercial vessels through the Strait of Hormuz added another layer of uncertainty. That waterway carries about one‑fifth of global oil flows, so any disruption would ripple across energy markets and increase volatility in futures pricing.

Analysts from ANZ Research note that the modest risk‑on rebound was short‑lived, as Trump’s dissatisfaction dampened optimism. With oil prices hovering near the $100 mark, traders eye supply‑side developments in the Middle East and the potential impact of U.S. military logistics on global oil transport routes.

The current price trajectory underscores the delicate balance between diplomatic gestures and market sentiment. Investors will monitor U.S. policy shifts and regional stability closely, as any escalation could quickly push prices back into double‑digit gains, reshaping hedging strategies and risk appetites across energy portfolios. This shift may also influence corporate borrowing costs.