Oil prices continued their decline on Thursday, falling by more than 4%, causing Brent crude to drop below $100 per barrel amid renewed hopes for a peace deal between the US and Iran that could lead to the gradual reopening of the Strait of Hormuz, UNN reports, citing Reuters.
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Brent crude futures fell by $4.31, or 4.3%, to $96.96 a barrel by 12:42 GMT (15:42 Kyiv time). US West Texas Intermediate crude decreased by $4.44, or 4.7%, to $90.64.
Trading on Thursday was volatile: the Brent price fluctuated in a range from a 1% increase to a 4.6% decrease compared to the previous day's close.
Both benchmarks fell by more than 7% on Wednesday, reaching two-week lows amid optimism regarding a possible end to the conflict in the Middle East.
The price drop continued on Thursday as investors reacted to new headlines about progress in potential peace talks.
Analysts pointed to a report by the Saudi TV channel Al Arabiya, which stated that an agreement had been reached to ease the American blockade in exchange for the gradual reopening of the Strait of Hormuz, and a report by Israel's Channel 12, which said that Iran had agreed to transfer its stockpiles of 60%-enriched uranium to a third country.
"A confirmed deal would likely quickly return the Brent price to the $80-90 range. A breakdown in negotiations or Trump returning to strikes would immediately drive the price to over $120 per barrel," SEB Research analyst Ole Hvalbye wrote in a note.
On Wednesday, Iran stated it was considering a US peace proposal which, according to sources, would formally end the war but leave unresolved key US demands regarding Iran ending its nuclear program and reopening the Strait of Hormuz.
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Earlier this week, US Treasury Secretary Scott Bessent urged China to step up diplomatic efforts to persuade Iran to open the Strait of Hormuz to international shipping, adding that US President Donald Trump and his Chinese counterpart Xi Jinping will discuss the issue at a meeting next week.
"While peace talks are likely to continue at least until the US-China summit next week, the outlook for the future remains uncertain," said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment.