Brent dropped below $64 a barrel, losing as much as 3.9% in London. US crude futures also slid and oil companies led declines in European stock markets.

“I think we’re getting close to maybe doing a deal,” Trump told reporters in Doha.

Earlier, prices fell as NBC reported Tehran was willing to commit to not having nuclear weapons in exchange for sanctions relief, reiterating the country’s long-held position. In his remarks, Trump cited a news report saying Iran has agreed to terms, without elaborating.

Crude’s slump Thursday is the latest move in an extended run of volatile trading. Earlier this week, prices were buoyed in part by the president’s threat to exert maximum pressure on Iranian oil exports. Iran’s top nuclear negotiator said Wednesday that he hopes the US will show a more realistic approach in the next round of talks between the two nations.

“In less than 24 hours, the narrative has shifted from the US imposing new sanctions on Iran to growing speculation that a diplomatic breakthrough may be within reach,” said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management. “If a deal is concluded, it would increase the likelihood of a significant oversupply later this year, especially when combined with the planned production increases from OPEC+.”

Brent has averaged about $63 a barrel so far this month, the lowest since 2021. The pullback will help soothe inflationary pressures in consuming economies but hits the coffers of major producers. US shale companies have already reined in capital spending plans, and Saudi Arabia has lifted borrowing levels as low prices already show signs of biting.

Adding to the gloom, the International Energy Agency said it expects global consumption growth to slow for the rest of the year as trade uncertainty puts pressure on demand.

“We’re seeing clear signs that the global economy is slowing and oil demand growth is slowing,” Toril Bosoni, head of the oil markets division at the IEA said in a Bloomberg TV interview.

In wider markets, equities retreated as the rally following a US-China trade truce lost steam.