Oil erased an earlier gain after Qatar's Emir spoke with US President Donald Trump about de-escalating the Iran war. The call fueled hopes for a resolution that could support energy flows from the Middle East.
The reversal shows how sensitive crude prices remain to developments in the region. Traders had pushed prices higher before the news, but signs of possible diplomacy prompted a sell-off as investors weighed the prospect of more stable supply.
Qatar has long played a mediating role in regional disputes, and its engagement with Washington on the conflict is closely watched by energy markets. Any progress toward de-escalation is seen as a potential factor in easing concerns over disruptions to shipping and production.
The source report, published by Bloomberg Markets, indicates that the intraday move reflected shifting expectations rather than a confirmed agreement. Market participants will likely continue to track diplomatic developments, along with official statements from both governments, for further direction on oil prices.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing