RoydadNaft –  Brent crude oil futures dropped by $3.11 (a 3.12% decrease) to $96.47 per barrel. U.S. West Texas Intermediate (WTI) crude futures fell by $3.64 (a 3.88% decrease) to $90.25 per barrel.

According to Roydad Naft, oil prices fell more than 3% on Wednesday as traders assessed progress in peace talks between the United States and Iran amid escalating hostilities.

Brent crude oil futures declined by $3.11, or 3.12%, to $96.47 per barrel (as of 09:13 GMT). U.S. WTI crude futures also dropped $3.64, or 3.88%, to $90.25 per barrel.

This decline erased nearly all of Brent’s gains from Tuesday.

“Significant progress has been made toward ending the crisis, and more vessels are passing through this vital chokepoint. This has renewed downward pressure,” said Tamas Varga, analyst at PVM, regarding Wednesday’s price drop.

Brent futures for July delivery had risen 3.6% in the previous trading session after the United States carried out new strikes in Iran, weakening hopes for a peace agreement between Washington and Tehran that had emerged over the weekend.

Analysts at Commerzbank said on Wednesday: “Hopes for a framework agreement between the U.S. and Iran to end the conflict have diminished somewhat due to recent U.S. attacks on Iranian missile bases and vessels that appeared to be attempting to mine the Strait of Hormuz.”

They added: “Nevertheless, confidence among market participants remains high.”

Iran stated on Tuesday that the United States had violated the ceasefire by striking targets near the Strait of Hormuz, while Washington described the attacks as defensive.

Israel also intensified its bombing in Lebanon on Tuesday, further straining peace efforts.

Following the April ceasefire in the three-month war, both sides had shown signs of progress in negotiations to reopen the Strait of Hormuz — a critical route for global oil and gas flows.

However, reports of some liquefied natural gas (LNG) tankers passing through the Strait of Hormuz in recent days have raised expectations for an early reopening of the waterway, which could further boost global supply.