(Bloomberg) -- Oil fell for a second day after President Donald Trump said the US and Iran are getting closer to a deal regarding Tehran’s nuclear program.

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Brent was trading around $64 a barrel after losing as much as 4% 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 “sort of agreed to the terms,” though he didn’t elaborate.

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 he hopes the US will show a more realistic approach in the next round of talks between them.

“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 price 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 the low prices show signs of biting.

Adding to the gloom, the International Energy Agency said it expects global consumption growth to slow for the rest of this 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 IEA’s oil markets division, said in a Bloomberg Television interview with Francine Lacqua.

Oil touched a four-year low during the depths of the trade tumult earlier this month before mounting its biggest four-day gain since October after a détente was announced this week.

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Prices remain down by 14% this year thanks to the twin hit of trade uncertainties and faster-than-expected output increases by the Organization of the Petroleum Exporting Countries and its allies.

--With assistance from Sarah Chen.

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