Oil prices tumbled on Wednesday, with Brent crude falling below $100 per barrel, as reports of a potential agreement between the US and Iran raised expectations of easing geopolitical tensions.
International benchmark Brent crude traded at $99.62 per barrel at 13.46 local time (1046 GMT), down around 9.3% from the previous close of $109.87.
Prices declined following renewed diplomatic signals from Washington and Tehran, boosting hopes that tensions around the Strait of Hormuz could ease after weeks of military escalation.
According to a report by Axios, the White House believes it is nearing a deal with Iran based on a one-page memorandum of understanding aimed at ending the conflict and setting a framework for broader nuclear negotiations.
Citing two US officials and two other sources, Axios said Washington expects a response from Tehran on key issues within the next 48 hours.
Meanwhile, Iran’s Foreign Minister Abbas Araghchi said Wednesday that Tehran remains committed to diplomacy while maintaining readiness to respond to any “malicious act.”
Araghchi also briefed China’s Foreign Minister Wang Yi during a meeting in Beijing on recent diplomatic efforts to end the US-Israeli war against Iran, including Pakistan-mediated talks between Tehran and Washington.
“Iran, just as it acted decisively in defending itself and remains fully prepared to confront any aggression, is also serious and steadfast in the field of diplomacy,” Araghchi said.
The developments come after US President Donald Trump announced Tuesday that the US military would temporarily pause “Project Freedom,” an operation aimed at securing commercial shipping in the Strait of Hormuz.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
