Global oil prices drop as potential Iran-US deal cools supply fears

The US-Israel war against Iran has resulted in the largest-ever disruption of ⁠energy supplies due to Iran's interruption of traffic through the strait, which provides a passage for 20% of the world's oil ⁠and liquefied natural ‌gas shipments.

Oil prices dropped in early trade Thursday as hopes of de-escalation US-Iran tensions cooled down concerns over ongoing supply disruptions.

Brent crude futures slipped 44 cents, or 0.5%, to $94.49 a barrel at 0021 GMT. US West Texas Intermediate crude futures fell 70 cents, or 0.8%, at $90.59 a barrel.

The markets turned optimistic after reports said Iran could allow ships to transit through the Strait of Hormuz. On Wednesday, he ​White House sounded hopeful about reaching an agreement to end the war with Iran, while also warning of increasing economic pressure against Tehran if it remains defiant.

The US-Israel war against Iran has resulted in the largest-ever disruption of ⁠energy supplies due to Iran’s interruption of traffic through the strait, which provides a passage for 20% of the world’s oil ⁠and liquefied natural ‌gas shipments.

US and Iranian officials were mulling a return ​to Pakistan for further negotiations as early as the ‌coming weekend, after first round of talks failed on Sunday. Mediator Pakistan’s army chief Wednesday arrived in Tehran in order to try and prevent ‌a renewal of ​the conflict.

The US ​imposed a blockade at Iranian ports that its military said has completely halted trade going in and out ​of the country by sea.

US Treasury Secretary Scott ⁠Bessent said Wednesday that Washington will not renew the waivers that allowed the purchase of some Iranian and Russian oil without facing US sanctions.

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Oil prices dropped in early trade Thursday as hopes of de-escalation US-Iran tensions cooled down concerns over ongoing supply disruptions.

Brent crude futures slipped 44 cents, or 0.5%, to $94.49 a barrel at 0021 GMT. US West Texas Intermediate crude futures fell 70 cents, or 0.8%, at $90.59 a barrel.

The markets turned optimistic after reports said Iran could allow ships to transit through the Strait of Hormuz. On Wednesday, he ​White House sounded hopeful about reaching an agreement to end the war with Iran, while also warning of increasing economic pressure against Tehran if it remains defiant.

The US-Israel war against Iran has resulted in the largest-ever disruption of ⁠energy supplies due to Iran’s interruption of traffic through the strait, which provides a passage for 20% of the world’s oil ⁠and liquefied natural ‌gas shipments.

US and Iranian officials were mulling a return ​to Pakistan for further negotiations as early as the ‌coming weekend, after first round of talks failed on Sunday. Mediator Pakistan’s army chief Wednesday arrived in Tehran in order to try and prevent ‌a renewal of ​the conflict.

The US ​imposed a blockade at Iranian ports that its military said has completely halted trade going in and out ​of the country by sea.

US Treasury Secretary Scott ⁠Bessent said Wednesday that Washington will not renew the waivers that allowed the purchase of some Iranian and Russian oil without facing US sanctions.