Oil Prices Drop to $105 Amid US-Iran Peace Talks

On Wednesday, Brent crude oil prices dropped to $105 per barrel, a decline attributed to ongoing peace talks between the United States and Iran aimed at de-escalating tensions in the Middle East. The price fell 6% from $111 on Tuesday, while West Texas Intermediate (WTI) decreased to $98.

US President Donald Trump is negotiating with Iran, which is reportedly in the final stages of discussions. However, investors remain wary of the potential disruptions to Middle Eastern oil supply.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei stated that Iran is prepared to develop protocols for safe shipping traffic in cooperation with coastal states. Despite signs of progress, analysts expect that global oil supply tightness will persist even if a deal is reached, with projections suggesting Brent crude could rise to $120 per barrel in the near term.

The Strait of Hormuz remains largely shut, affecting oil transport, while three supertankers were reported to be crossing the strait carrying oil bound for Asian markets.