Bringing you the latest news on energy
Provided by AGP
Oil Prices Fall Over 9 Percent
(MENAFN) Global oil prices extended a steep selloff on Wednesday, with both major crude benchmarks suffering double-digit losses after reports emerged that Washington and Tehran are moving closer to a preliminary agreement — raising expectations that one of the world's most critical energy chokepoints could soon reopen.
International benchmark Brent crude tumbled 9.2% to $99.8 per barrel by 1035 GMT, compounding a roughly 4% drop recorded in the prior session. US West Texas Intermediate fell even harder, shedding more than 10% to settle around $91.3 per barrel — marking one of the sharpest single-day declines in recent memory for both contracts.
The sell-off was fueled by growing optimism over a diplomatic breakthrough between the two adversaries. Sources familiar with the matter indicated that US officials believe an initial framework could be finalized shortly, as Washington awaits Tehran's formal response on several unresolved key issues that would pave the way for broader nuclear talks.
US President Donald Trump announced that Washington would temporarily suspend "Project Freedom" — a military escort operation designed to shepherd commercial vessels through the Strait of Hormuz — pointing to meaningful progress at the negotiating table as justification for the pause.
The Strait of Hormuz, through which a substantial share of the world's seaborne oil passes daily, has been a focal point of market anxiety for weeks. Escalating military activity in the waterway disrupted shipping lanes and stoked fears of a severe supply shock that sent crude prices surging in earlier sessions.
The humanitarian toll of the standoff remains significant. The US administration confirmed that approximately 23,000 seafarers representing 87 nations are still stranded across the Persian Gulf as a direct consequence of the ongoing disruption.
Even as geopolitical risk begins to recede, analysts caution that the damage may already be done — surging energy costs have started to erode global demand, introducing a fresh layer of downward pressure on prices that could persist well beyond any diplomatic resolution.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
