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According to Reuters, global oil prices slipped on Tuesday as renewed peace negotiations between Russia and Ukraine raised hopes of a potential breakthrough that could ease sanctions on Russian crude and increase global supply.
Brent crude futures fell by about 1%, trading near $65.97 per barrel, while U.S. West Texas Intermediate (WTI) also edged lower. The market reaction came as diplomats signaled progress in discussions that might pave the way for an eventual ceasefire or resolution to the conflict.
Energy analysts note that the talks have created cautious optimism among traders, who expect that if sanctions on Moscow are softened, millions of barrels of Russian crude could re-enter global markets. While this would help reduce tight supply and bring relief to fuel-hungry economies, it also places downward pressure on oil prices.
The decline in prices also had a ripple effect on Gulf stock markets, with indices in Saudi Arabia, Qatar, Dubai, and Abu Dhabi trading slightly lower. According to Reuters Middle East, investors adopted a wait-and-see stance, wary of how peace negotiations and fluctuating oil prices could impact corporate earnings and government revenues in the region.
Despite the drop, experts caution that the outlook remains uncertain. “Peace talks are positive, but until we see concrete agreements, supply risks remain. Any breakdown in negotiations could quickly reverse price trends,” one analyst said.
For now, the market remains finely balanced—torn between optimism for peace and caution over ongoing geopolitical risks.
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Sources: Reuters (Business/Energy, Aug. 19, 2025); Reuters Middle East (
Aug. 19, 2025).
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