NEW DELHI: Global oil prices edged lower on Tuesday after U.S. President Donald Trump signaled that discussions with Iran were continuing, easing immediate fears of supply disruptions in the Middle East.

Brent crude and West Texas Intermediate (WTI) both slipped in early trading, reversing gains from the previous session when prices had jumped sharply on concerns over escalating regional tensions. Traders said the pullback came as markets reacted to renewed hopes of diplomatic engagement between Washington and Tehran.

President Trump stated that talks with Iran were still underway, though reports indicated mixed signals from both sides regarding the status and progress of negotiations. The uncertainty has kept energy markets highly volatile, with prices swinging sharply based on geopolitical headlines.

Analysts noted that oil markets remain particularly sensitive to developments involving Iran due to risks surrounding the Strait of Hormuz, a key shipping route that handles a significant share of global oil trade. Any potential de-escalation is seen as reducing the risk premium built into crude prices.

Despite the decline, market sentiment remains cautious. Investors continue to monitor the talks closely, as any breakdown in negotiations or renewed escalation could quickly reverse recent losses and push prices higher again.

For now, the easing of immediate conflict fears has provided temporary relief to global energy markets, though analysts warn that volatility is likely to persist as geopolitical uncertainty continues.