Oil prices extended their decline on Wednesday, as cautious optimism over a possible resumption of US-Iran talks eased immediate supply fears, even as underlying risks from the ongoing conflict continued to cap losses.
Benchmark Brent crude fell to $95.25 a barrel, while West Texas Intermediate dropped to about $91.25, marking a second straight day of declines after last week’s sharp rally.
The pullback follows indications that negotiations between Washington and Tehran could resume, possibly in Pakistan, raising hopes of a diplomatic breakthrough that could eventually restore disrupted oil flows from the Middle East.
Markets have been highly sensitive to headlines around the conflict, with prices swinging sharply in recent weeks. Earlier this week, crude had surged close to or above $100 per barrel amid fears of prolonged supply disruptions, while physical oil cargoes in some regions briefly approached record highs near $150.
At the heart of the volatility is the disruption to the Strait of Hormuz, through which roughly one-fifth of global oil supply typically flows. The ongoing blockade and conflict have sharply curtailed traffic, leaving shipments well below normal levels despite a temporary ceasefire.
While some vessels have continued to transit the waterway, the flow remains inconsistent and subject to military restrictions, contributing to persistent uncertainty in global energy markets.
Source: TradeArabia News Service
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