U.S. energy company shares fell in pre-market trading, while oil prices dropped by over 5%.

Oil prices declined after U.S. President Donald Trump stated that Iran was in "serious talks" with Washington, signaling a potential easing of tensions with the OPEC member nation and alleviating concerns over supply disruptions.

Brent crude futures LCOc1 fell 5.2% to $65.69 a barrel, while U.S. West Texas Intermediate crude CLc1 dropped 5.5% to $61.61 a barrel.

Both Brent and WTI crude fell after posting their largest monthly gains since 2022 in January, as the risk of a military strike against Iran diminished following Trump's comments over the weekend. In January, Brent prices rose 16% and WTI prices climbed 13%.

Shares of top oil and gas companies Exxon Mobil XOM.N and Chevron CVX.N fell 1.3% and 1.6%, respectively.

ConocoPhillips COP.N dropped 2.5%, EOG Resources EOG.N declined 3.6%, Diamondback Energy FANG.O was down 3.3%, and Occidental Petroleum OXY.N fell 3%.

Oilfield service providers Halliburton HAL.N and SLB SLB.N saw their shares decrease by 3.5% and 2.8%, respectively.

Refining companies also traded lower, with Marathon Petroleum MPC.N and Valero Energy VLO.N down 2% and 2.4%, respectively.