Oil prices have plummeted amid expectations of a ceasefire in the Persian Gulf
Global oil prices fell sharply on Wednesday—by nearly 4%—amid expectations that the war in the Persian Gulf region might end, which could ease disruptions to energy supplies from the Middle East.
This was reported by Reuters.
Specifically, Brent crude futures fell by $4.89 (4.7%) to $99.60 per barrel, after previously dropping to $97.57. Meanwhile, U.S. WTI crude oil futures fell by $3.54 (3.8%) to $88.81 per barrel, after dropping to $86.72 in the previous session.
The day before, both benchmarks had risen by nearly 5%, but lost some ground during volatile trading after the market closed.
Analysts attribute this trend to rising expectations of a possible ceasefire. “Expectations for a ceasefire have risen somewhat, and profit-taking is prevailing in the market. However, the prospects for the success of the negotiations remain uncertain, which is holding back sales,” noted Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment.
Earlier, U.S. President Donald Trump announced progress in negotiations to end the war with Iran. According to sources, Washington has presented Tehran with a 15-point proposal for a settlement.
At the same time, according to Israeli media reports, the U.S. is seeking to secure at least a one-month ceasefire to discuss a broader plan that includes dismantling Iran’s nuclear program, ending support for proxy groups, and opening the Strait of Hormuz.
Despite this, experts remain cautious in their forecasts. Priyanka Sachdeva, a senior analyst at Phillip Nova, emphasized that the situation in the Middle East will continue to be a key factor influencing the market, keeping oil prices highly volatile.
Prior to this, the global energy market reacted with a sharp rise in prices following an official statement from Tehran denying any agreements with the White House.
As a reminder, oil prices have remained above $100 following the resumption of Iraqi supplies.
Oil prices also fell following Trump’s remarks on the Middle East.
