
Global oil prices fell sharply on Wednesday in Asian markets after US President Donald Trump said negotiations to end the conflict with Iran were progressing.
Brent crude fell 5% to $99.29 a barrel, while U.S. crude fell more than 5.5% to $88.41 a barrel.
The price drop came amid investor hopes for an easing of tensions in the Middle East, a key region for global energy supplies.
Trump said talks are underway "right now" and that the Iranian side wants to reach a deal, although these claims have been disputed by officials in Tehran, who have called reports of negotiations "fake news."
Meanwhile, the situation on the ground remains tense. Iran and Israel continue to exchange missile attacks, while the Israel Defense Forces have launched a new wave of attacks targeting infrastructure in Tehran. In parallel, Israel has warned of evacuations in south Beirut, as part of operations against Hezbollah.
A key development that affected energy markets was Iran's statement that "non-hostile" ships could pass through the Strait of Hormuz, provided they coordinated with Iranian authorities and did not support actions against the country.
This sea route is vital for global trade, as about 20% of the world's supply of oil and liquefied natural gas passes through it.