Oil Prices Drop 3.5% Amid Progress in US-Iran Negotiations

Global oil prices fell 3.5% on Wednesday as markets reacted to reports of progress in indirect negotiations between the United States and Iran. Brent crude retreated to between $96 and $98 per barrel following a previous 4% gain, while West Texas Intermediate (WTI) declined toward the $90-$93 range. The price correction is driven by expectations that a potential agreement could lead to a partial easing of sanctions on Tehran. Markets are currently pricing in the possibility of millions of additional barrels of Iranian crude returning to the global supply. Investors continue to monitor geopolitical tensions in the Middle East and supply chain developments in the Strait of Hormuz. These factors remain critical to price volatility as traders balance the prospect of increased Iranian exports against regional security risks.