Crude oil prices slipped on signs that Iran will attend direct negotiations with the United States in Islamabad. The talks are scheduled before a ceasefire between the two nations expires, raising hopes for a de-escalation of tensions that have long threatened stability in global energy markets.

The diplomatic development comes as investors have been closely watching for any signs of breakthrough in the longstanding dispute between Washington and Tehran. Iran, as one of OPEC's major producers, has been a persistent source of geopolitical risk for energy markets, with tensions periodically pushing crude prices to elevated levels.

The market reaction suggests traders are pricing in a reduced risk of supply disruptions should negotiations progress. While significant obstacles remain, the mere prospect of direct talks has been enough to ease concerns that had supported prices in recent weeks.