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Global crude prices fell for a second consecutive session on Wednesday, as expectations of fresh diplomatic engagement between the United States and Iran eased concerns over supply disruptions in the Middle East.
Market sentiment improved after US President Donald Trump signalled that discussions to defuse the ongoing conflict could resume within days, possibly with Pakistan emerging as a venue for talks.
The optimism comes after negotiations collapsed over the weekend, prompting Washington to enforce a blockade on Iranian-linked shipping. The move had raised fears of tighter supplies following disruptions around the Strait of Hormuz, a key route for global oil trade.
As prospects of dialogue strengthened, benchmark crude prices moved lower. Brent crude dropped below the $95 per barrel level, touching an intraday low of about $94.42 after earlier trading close to $99.45.
US benchmark West Texas Intermediate also saw a notable decline, slipping to around $87 during the session before stabilising near the $90 mark by the close.
The easing trend had already begun earlier, supported by reports indicating a willingness from Israel and Lebanon to pursue further talks, adding to hopes of reduced tensions in the region.
By early Wednesday trading, Brent crude was hovering near $94.66 per barrel, while WTI stood at approximately $90.65, both lower compared to their previous closing levels.
Analysts said that signs of diplomatic progress, along with reduced fears of prolonged disruption in oil flows, have helped calm markets after recent volatility.
Also Read: Oil Prices Fall Nearly 3% As US-Iran Talks Ease Supply Concerns
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