Global crude oil prices plunged on Wednesday after remarks by US President Donald Trump suggested that negotiations with Iran are approaching a final stage, raising expectations of a potential diplomatic breakthrough that could ease global supply risks.
Brent crude fell by $6.64 (5.97%) to $104.64 per barrel, while US West Texas Intermediate (WTI) dropped $6.49 (6.23%) to $97.66 per barrel.
Trump also warned that further action could follow if Iran rejects the proposed deal, keeping markets cautious despite optimism over easing tensions.
Traders reacted quickly to the possibility of improved Iranian oil exports and reduced geopolitical risk in the Middle East. However, uncertainty remains as shipping security concerns and regional instability continue to influence market sentiment.
A key indicator of supply tightness also eased, with the Brent near-term premium over later contracts narrowing sharply to around $20 per barrel from over $35 last month, signaling reduced immediate supply pressure.
Elsewhere, Russia reported that some countries have begun easing restrictions on its oil exports, while the UAE’s ADNOC chief warned that global oil flows may take months to stabilize fully. In the United States, crude inventories declined amid strong demand.
Analysts say oil markets remain volatile, balancing hopes of diplomatic progress with persistent supply risks and uneven global production recovery. They warn that any setback in US–Iran talks could quickly reverse recent price declines.
