Oil Settles 5% Lower as Markets Await Updates on US–Iran Deal Talks
Oil prices settled about 5% lower on Wednesday as investors waited for clearer updates on a potential framework agreement between the United States and Iran to end the conflict and reopen the Strait of Hormuz. The pullback erased the previous session’s sharp gains, reflecting a partial unwind of supply-risk premium even as negotiations remain unresolved.
Brent crude futures settled down $5.29, or 5.31%, at $94.29 a barrel, while US West Texas Intermediate (WTI) fell $5.21, or 5.55%, to $88.68. Both benchmarks hit their lowest levels in a month earlier in the session, and the drop more than reversed Brent’s advance on Tuesday.
On diplomacy, US Secretary of State Marco Rubio said there has been some progress toward a deal, but President Donald Trump said the US and Iran still have issues to resolve. Iran’s Fars News also reported that key disagreements remain. Washington additionally dismissed an Iranian state television report claiming a framework deal would restore shipping through Hormuz within a month and lift a US naval blockade on Iranian vessels.
Iranian state TV had said the US would withdraw forces from near Iran and lift its blockade, while management of ship traffic through Hormuz would be handled by Iran in cooperation with Oman. The conflicting accounts kept the market headline-driven and sensitive to incremental shifts in the narrative.
Dennis Kissler, senior vice president of trading at BOK Financial, said comments from an Iranian military leader that the likelihood of returning to war is low led many traders to believe a peace deal is getting closer. He added that the extremely tight global supply backdrop priced into crude appears to be easing, reinforcing downward pressure on prices.
Source : Newsmaker.id
