The price of Brent crude dropped to $105 per barrel on Wednesday amid ongoing peace talks aimed at de-escalating tensions in the Middle East.
According to data from Oilprice.com, Brent fell by $6, down from $111 on Tuesday, while WTI eased to $98 from $105 the previous day.
The decline came after US President Donald Trump said that negotiations with Iran were in the final stages, though investors remain wary about the outcome of the peace talks as disruption to Middle Eastern supply continues.
According to Reuters, Trump said negotiations with Iran were in the final stages but warned of further attacks unless Iran agrees to a deal.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Iran was ready to develop protocols for safe shipping traffic in cooperation with other coastal states without providing further details.
Despite signs of progress, some market participants and analysts remain cautious about the outcome of negotiations and global supply tightness, which is expected to persist even if the US and Iran reach a deal.
Some analysts said they expect Brent crude to rise to $120 per barrel in the near term, stating that oil markets are underpricing the risk of prolonged supply disruption.
