Crude oil prices edged lower in early trading as markets focused on renewed US-Iran diplomatic talks. Brent crude futures fell 0.4% to $82.50 per barrel, while West Texas Intermediate dropped 0.3% to $78.20. The decline came amid speculation that potential sanctions relief on Iranian oil exports could increase global supply.

The diplomatic discussions between Washington and Tehran have been closely watched by energy traders, who fear that easing tensions could lead to increased Iranian crude flowing back into international markets. Iran has been under strict US sanctions since 2018, limiting its oil exports to around 1 million barrels per day compared to pre-sanctions levels of 2.5 million.

Market analysts note that while the talks represent progress, significant hurdles remain before any meaningful sanctions relief could be implemented. The uncertainty surrounding the negotiations continues to create volatility in oil markets, with traders balancing supply concerns against ongoing geopolitical risks in the Middle East.