Brent crude futures fell about 4% toward $100 per barrel on Wednesday, reversing recent gains as fresh reports emerged of U.S. diplomatic efforts aimed at ending the conflict with Iran.
Traders interpreted signs that Washington is pushing for a one‑month ceasefire to open peace talks, including a reported 15‑point proposal to Tehran, as a potential easing of supply risks.
The slide came despite lingering military tensions in the region. President Donald Trump ordered the deployment of roughly 2,000 additional U.S. troops to the Middle East as the administration weighs options for countering Iran’s influence over the Strait of Hormuz, a chokepoint for about one‑fifth of global oil shipments.
Oil prices had jumped more than 5 % in the prior session after Tehran publicly denied engaging in negotiations and reiterated that it would not restore normal tanker transit through the Strait of Hormuz, heightening fears of prolonged disruption to global supply.
Markets swung between caution and optimism on Wednesday, as hopes for a diplomatic breakthrough weighed on crude prices, even as ongoing Middle East tensions and chokepoint risks kept a floor under oil.
Energy traders are now balancing the prospect of a fragile cessation of hostilities with the very real possibility that supply snarls may persist, especially if the Strait of Hormuz remains effectively closed or contested.
