Oil Prices Drop Sharply Amid Hopes for US-Iran Nuclear Deal

Oil prices slid more than 3% on Thursday following comments from former US President Donald Trump, who said Washington is nearing a deal with Iran on its nuclear program—raising the possibility of sanctions being lifted and more Iranian oil hitting global markets.

According to Russ Mould, investment director at AJ Bell, the market reacted strongly to the potential return of Iranian crude, which could significantly boost supply.

The remarks followed a fourth round of negotiations between the US and Iran, with both sides aiming to de-escalate tensions and prevent a potential Israeli military strike on Iran’s nuclear facilities.

Markets in the US and Europe mostly ended higher despite early volatility. Meanwhile, the US dollar remained under pressure due to ongoing trade uncertainty.

In London, sentiment was lifted by data showing better-than-expected UK economic growth in Q1, ahead of looming tax hikes and tariff impacts.

Wall Street opened lower on warnings from Walmart about price hikes due to tariffs. While Walmart reported $4.5 billion in profits—down 12.1% year-on-year but above estimates—its shares dropped 5% before recovering slightly.

CEO Doug McMillon acknowledged the company’s efforts to keep prices down but admitted that current tariff levels were difficult to absorb entirely.

As markets wait for further clarity on trade negotiations and new economic data, the possibility of easing tensions with Iran and China remains a key focus.