Oil prices fell for a third consecutive session as investors evaluated the potential for a diplomatic nuclear agreement between Washington and Tehran, which could avert a U.S. military strike on Iran.

West Texas Intermediate crude dropped 1%, settling below $66 per barrel, while Brent crude also declined 1%, closing under $71 per barrel. The decline followed a report from National Public Radio indicating that Iran is prepared to reach a deal with the United States as soon as possible. The report circulated on social media, and markets remain highly sensitive to developments related to Middle East tensions. However, traders expressed skepticism over whether Iran is genuinely ready to finalize an agreement.

Losses in oil prices were limited by signals that regional tensions are far from easing. A defense official stated that the U.S. deployed 12 F-22 stealth fighter jets to Israel on Tuesday, further expanding its substantial military presence in the region.

Nuclear negotiations are scheduled to resume on Thursday in Geneva, where U.S. Special Representative Steve Wittkoff and Senior Advisor Jared Kushner are set to meet again with Iranian Foreign Minister Mohammad Javad Zarif.

April WTI crude fell 1% on the New York market, settling at $65.63 per barrel.

April Brent crude declined 1%, ending the session at $70.77 per barrel.