Oil prices fell for a second day in a row, after US President Donald Trump hinted at ending the war with Iran and a possible peace deal.
Brent crude futures fell $1.89, or 1.7%, to $107.98 a barrel. US West Texas Intermediate (WTI) crude futures fell $1.83, or 1.8%, to $100.44, after a 3.9% drop the previous day.
On Tuesday, Trump unexpectedly announced that he would temporarily suspend ship escort operations through the Strait of Hormuz, citing progress on a comprehensive deal with Iran, though he did not provide details. There was no immediate response from Tehran.
“This signals a possible de-escalation and raises hopes that the remaining ships in the Gulf will be released, which could gradually bring supplies back to the market,” said Anh Pham, senior oil researcher at LSEG.
Pham added that prices remain high (with both Brent and WTI above $100 a barrel) because the prospects for a peace deal remain uncertain, and it will take time for trade flows to fully resume even if a deal is reached.
