Crude Oil Prices Fall Nearly 3% As US-Iran De-Escalation Hopes Ease Tensions

International crude oil prices on Wednesday reversed early gains, falling nearly 3 per cent from the day’s highs as hopes of de-escalation between the United States and Iran influenced market sentiment.

Brent Crude futures declined to an intraday low of $102.79 per barrel, about 2.9 per cent below the day’s peak of $105.86.

At the time of writing, Brent was trading around $103.19 per barrel, down roughly 1 per cent. West Texas Intermediate (WTI) crude fell as much as 2.19 per cent from its intraday high of $103.31 and was marginally lower at $101.25 per barrel.

Earlier in the session, oil prices had rallied, with Brent rising 1.81 per cent and WTI gaining 1.90 per cent in morning trade.

Analysts pointed to heightened volatility driven by shifting geopolitical signals and macroeconomic factors.

Improved sentiment followed remarks by US President Donald Trump, indicating that the US could exit the conflict within two to three weeks, alongside signals from Iran suggesting a conditional willingness to end hostilities.

Uncertainty over the timeline and structure of any potential agreement, along with risks of disruption in the Strait of Hormuz, continues to keep markets cautious.

Despite the pullback, crude prices have largely stayed above $100 per barrel through March, supported by concerns over supply disruptions in the Strait of Hormuz, which handles nearly one-fifth of global oil shipments.

Analysts noted that easing tensions have prompted some profit-booking, but persistent uncertainties and mixed economic data from major economies such as the US and China are maintaining upward pressure on prices.

Domestic equity markets responded positively to the improved sentiment, with benchmark indices Sensex and Nifty rising by up to around 3 per cent in early trade, tracking global cues.

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