Oil Extends Decline as Optimism Over Iran Talks Gains Traction

Oil prices extended a sharp decline with Brent falling below $88 a barrel after losing 8.7% on Monday, its biggest drop in over three months, while WTI traded near $82. The sell-off followed President Trump's announcement that the US and Iran were engaged in talks to end the Middle East conflict, prompting Iran to halt retaliation against US bases. Separately, Kazakhstan resumed loadings at the Caspian Pipeline Consortium terminal after earlier disruptions, while Macquarie warned that an oversupply of about 2 million barrels per day could emerge in the fourth quarter once a deal is reached.