Oil prices fluctuated amid US-Iran tension: Eyes on peace talks

Oil prices fluctuated after a two-day decline as conflicting signals emerged over U.S.-Iran diplomatic contacts, with reports that Tehran and Washington are reviewing new proposals presented by mediators lifting market optimism while negative messaging from the Iranian side capped upside expectations. President Donald Trump's statement that no imminent strike on Iran is planned also drew market focus. The swings matter because traders are pricing geopolitical risk into crude at a time when any credible path toward negotiations could unwind the war premium, while a breakdown in talks would likely restore it. Watch for official responses from both capitals to the mediators' proposals and any scheduling of direct or indirect talks as the next catalysts for direction.