The prospect of a diplomatic solution to rising tensions between the US and Iran reversed last week’s steep price rises, when combative rhetoric on both sides and Trump’s decision to send an “armada” to the Middle East stoked fears of an imminent conflict.Oil markets interpreted the absence of an attack by the US over the weekend followed by Trump’s statement on talks with Iran as “a de-escalation”, said Arne Rasmussen, chief analyst at Global Risk Management.