Oil price falls as Trump talks up Iran peace negotiations

President Trump said negotiations are underway to end the war between the US and Iran, prompting oil prices to decline on expectations of reduced Middle East tensions. Iranian officials have disputed Trump's characterization of active peace talks, creating uncertainty about whether genuine diplomatic efforts are occurring. Oil markets typically fall when investors believe geopolitical risks are diminishing, since that reduces concerns about supply disruptions from conflict in a key energy-producing region. The conflicting claims between the White House and Tehran suggest either preliminary discussions are happening without official Iranian acknowledgment, or Trump's statement outpaces the actual state of negotiations. The oil market's immediate reaction underscores investor sensitivity to any signals of de-escalation in US-Iran relations.