Oil Eases to $105 as US–Iran Peace Talks Progress

Global oil prices slipped on Wednesday as renewed diplomatic efforts between the United States and Iran eased some geopolitical risk concerns in the energy market.

Brent crude fell to about $105 per barrel, down from $111 the previous day, while West Texas Intermediate (WTI) dropped to $98 from $105, according to market data from Oilprice.com.

The decline followed comments from U.S. President Donald Trump indicating that negotiations with Iran were in their final stages, raising hopes of a possible de-escalation in tensions that have disrupted global oil supply routes.

However, investors remain cautious, as uncertainty persists over whether the talks will result in a lasting agreement or further escalation.

Iranian officials, including Foreign Ministry spokesperson Esmaeil Baghaei, said Tehran was open to developing protocols for safe maritime traffic with regional states, though no detailed agreement has been confirmed.

Despite the price drop, analysts warn that global oil markets remain highly sensitive to supply risks, particularly in the Middle East, where tensions continue to threaten shipping routes.

Some market forecasts suggest Brent crude could rebound to around $120 per barrel in the near term if instability persists, while energy consultancy Wood Mackenzie projected that prices could surge as high as $200 per barrel if the Strait of Hormuz is significantly disrupted.

The Strait of Hormuz, a critical global oil transit chokepoint, typically handles about one-fifth of the world’s oil supply, making it a key pressure point for energy markets.

Shipping activity through the waterway has reportedly been disrupted, although recent data shows limited movement of tankers, including supertankers carrying crude oil bound for Asian markets.

Reports indicate that several vessels have begun cautiously transiting the Gulf after extended delays, reflecting gradual but fragile improvements in shipping conditions.

Analysts say that while diplomatic progress has helped ease immediate price pressures, the global oil market remains vulnerable to sudden shifts in Middle East security dynamics and supply chain disruptions.