Oil prices fell sharply after Donald Trump signaled a willingness to negotiate with Iran. The former president’s comments came amid a volatile market where investors weigh the risk of renewed sanctions and geopolitical friction, and the potential for a broader shift in supply dynamics.

Energy analysts note that a deal could lift oil inventories and ease supply concerns, but the uncertainty surrounding the U.S. administration’s stance keeps the market jittery. Karen Young from Columbia University’s Center on Global Energy Policy warned that any breakthrough would still face hurdles.

Investors now monitor U.S. Treasury announcements and Iran’s diplomatic moves for clues. A swift agreement could boost confidence in the energy sector, while a stalemate may trigger a rally in oil futures. Market watchers anticipate further statements from the White House in the coming weeks.

Analysts predict that any progress will be closely tied to the U.S. Congress’s approval of sanctions relief. Should a deal materialize, global supply chains could stabilize, benefiting downstream industries. Meanwhile, traders brace for volatility as political developments unfold in the next few months.