Oil prices fell on Monday as investors eased worries about a supply hit after U.S. President Donald Trump’s statement on Iran suggested tensions between Tehran and Washington may have eased.

Trump has repeatedly warned Iran that it may intervene if it fails to reach a nuclear deal or continues to suppress domestic protests, which Tehran claims are instigated by the West. On Saturday, he told reporters that Iran “Serious dialogue” with the United States.

His comments came after Iran’s top security official, Ali Larijani, said on X that preparations for the talks were underway.

Oil prices recently rose to six-month highs on concerns that the United States could launch a military strike against Iran. washington last week Deploying a “massive armada” to Iran The move raised fears of confrontation with Middle Eastern countries.

Global benchmark Brent crude oil It fell as much as 6.4% to $66.15 a barrel on Monday, and the latest drop was 4.41%. USA West Texas Intermediate Oil Futures fell 4.75% to $62.11 a barrel.

Andy Lipow, president of Lipow Oil Associates, said prices fell again after reports that Washington and Tehran had been communicating through intermediaries, raising hopes that tensions might be easing rather than rising.

“While negotiations are ongoing, Iran is threatening a regional war if they are attacked, which could lead to a sharp rise in oil prices, an outcome the Trump administration wants to avoid,” he told CNBC.

Marko Papic, macro and geopolitical strategist at BCA Research, added that the U.S. government’s sensitivity to oil prices could inhibit further escalation. “I do think President Trump is concerned that if oil prices rise to $70 to $80, he will be further in trouble before the midterm elections.”

The United States faces midterm elections later this year, and fuel prices have historically been a sensitive political issue for voters.

The diplomatic soundings also come as additional supply creeps into the market. While global oil production continues to exceed demand, Venezuelan crude, most of which comes from offshore and onshore inventories rather than new production, is increasing the number of barrels available.

While OPEC+ continues to manage output carefully, these flows are helping to keep a lid on prices, two experts said.

“More volumes of Venezuelan oil will enter the market as offshore and onshore inventories are liquidated and sold, but the oil market will also continue to be supported by OPEC+’s decision to maintain stable current production levels,” Lipow said.

The oil cartel decided on Sunday to keep production levels unchanged for March, extending a supply freeze by three months.