Global oil prices fell more than 1% after President Donald Trump said the United States is "getting along very well" with Iran, fueling optimism that diplomatic efforts between the two countries continue to make progress.

The decline followed reports that technical negotiations are currently under way in Doha, Qatar, where officials from both countries are working to advance discussions on several outstanding issues. According to multiple reports, Qatar and Pakistan are serving as key mediators, helping facilitate talks aimed at building on the recently announced interim peace framework.

Energy markets responded quickly to the developments, with investors viewing the renewed diplomatic engagement as a positive sign for global oil supplies. Traders believe continued negotiations reduce the risk of disruptions in the Middle East, one of the world's most important energy-producing regions.

A major focus of the discussions remains the future of the Strait of Hormuz, a critical shipping lane through which a significant share of the world's crude oil exports passes. Any reduction in geopolitical tensions surrounding the region is generally viewed as supportive for stable energy supplies and lower oil prices.

Lower crude prices could have broader economic benefits beyond the energy sector. Falling fuel costs often reduce transportation and manufacturing expenses while helping ease inflation pressures that have weighed on consumers and businesses over the past year.

The latest decline in oil prices also reflects growing investor confidence that negotiations may continue without major setbacks. While no final agreement has been reached, markets appear encouraged by the steady pace of diplomatic discussions and the willingness of both sides to remain engaged.

President Trump's comments added to the positive sentiment, suggesting relations between Washington and Tehran have improved since negotiations began. Although many of the most difficult issues—including Iran's nuclear program, sanctions relief, and long-term regional security—remain unresolved, officials have indicated that technical talks are continuing as both sides work toward a broader agreement.

Economists say sustained progress in negotiations could help stabilize global energy markets during the second half of 2026. Lower oil prices may also benefit industries such as transportation, manufacturing, construction, and real estate by reducing operating costs and easing inflationary pressures.

For now, investors will continue monitoring developments in Doha, where negotiators are expected to spend the coming weeks working through technical details. While significant challenges remain, the recent decline in oil prices highlights growing market optimism that diplomacy could help prevent further disruptions to global energy supplies.