Oil Prices Slip to $105 as US–Iran Peace Talks Ease Middle East Tensions

Global oil prices slipped on Wednesday as Brent crude fell to $105 per barrel, reflecting growing optimism over ongoing peace negotiations between the United States and Iran aimed at reducing tensions in the Middle East.

Data from Oilprice.com showed Brent crude dropped by $6 from Tuesday’s $111, while West Texas Intermediate (WTI) eased to $98 from $105. The decline followed comments from US President Donald Trump, who said talks with Iran were in their final stages, though uncertainty still lingers over the outcome.

Despite the apparent diplomatic progress, investors remain cautious, with concerns that supply disruptions in the Middle East could continue even if an agreement is reached. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Tehran is willing to develop protocols to ensure safe shipping in coordination with regional states, but did not provide further details.

Market analysts say oil prices may still be underpricing geopolitical risks. Some projections suggest Brent crude could climb to $120 per barrel in the near term, while energy research firm Wood Mackenzie warned that prices could surge as high as $200 if the Strait of Hormuz remains heavily restricted.

Meanwhile, shipping activity through the strategic waterway has shown slight movement, with several supertankers recently passing through after being delayed for months. However, traffic remains significantly below normal levels, highlighting the ongoing impact of regional instability on global energy routes.

The Strait of Hormuz, through which nearly one-fifth of global oil supply flows, continues to face disruptions, keeping energy markets on edge even as diplomatic efforts continue.