Oil prices declined on Wednesday, driven by growing optimism over a final agreement between the US and Iran.
International benchmark Brent crude traded at $108.66 per barrel at 10 a.m. local time (0700 GMT), down around 1.16% from the previous close of $109.87.
US benchmark West Texas Intermediate also decreased about 1.34% to $100.86 per barrel, compared with $102.27 in the previous session.
US President Donald Trump announced Tuesday that the US military will temporarily pause "Project Freedom" to restore freedom of navigation for commercial shipping through the Strait of Hormuz.
US and Iran have mutually agreed that "Project Freedom" will be paused for a short period "to see whether or not the Agreement can be finalized and signed," while US blockade will remain "in full force and effect," Trump said.
This development eased tensions stemming from the Strait of Hormuz in the region, while raising expectations of diplomatic progress toward ending the war between the US/Israel and Iran.
Meanwhile, data pointing to a sharp decline in US crude oil inventories limited the fall in prices.
American Petroleum Institute estimated that US crude oil inventories fell by 8.1 million barrels last week compared with the previous week. The decline raised concerns over tightening supply in the country while indicating stronger demand.
US Energy Information Administration is expected to release official inventory data later in the day.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr
