Oil prices slid, erasing a recent advance that followed escalating tensions between the U.S. and Iran after President Trump said Iran appears to be backing away from a conflict.

Oil prices slid Wednesday, erasing a recent advance that followed escalating tensions between the U.S. and Iran after President Trump said Iran appears to be backing away from a conflict.

U.S. crude futures erased a more than 4% overnight gain and ended the day down $3.09, or 4.9%, at $59.61 a barrel on the New York Mercantile Exchange, logging their biggest one-day percentage drop since late November and finishing the session below their Jan. 2 close of $61.18. Prices have been volatile since that day, when the U.S. ordered...