Oil prices recovered slightly after a sharp drop on Wednesday, as President Donald Trump declared the US is in the "final stages" of negotiations with Iran. Markets had sold off earlier on optimism that a deal could be reached, which would likely lift sanctions and allow more Iranian crude to reach global markets. The modest rebound suggests traders are balancing hopes for resolution against lingering uncertainty.

Brent crude briefly reversed its losses but ended the day barely changed. The sell-off followed Trump's earlier suggestion that talks with Tehran were progressing quickly, which pulled prices lower on the prospect of increased supply. Investors appear cautious, unwilling to chase further gains until an actual agreement materializes.

For oil-producing nations, a deal would mean additional pressure on already-stretched budgets. OPEC members in particular would face renewed headwinds from cheaper Iranian barrels entering the market. The latest recovery looks more like a pause than a trend shift.