Crude oil prices dropped on Wednesday as the market focuses on potential progress made in peace talks between the U.S. and Iran despite renewed hostilities.
Brent crude at last look had lost 3.3% to US$96.28/barrel and West Texas Intermediate crude had fallen 4.1% to $90.02/barrel. Both sides had indicated developments in talks to reopen the crucial Strait of Hormuz, but strikes on both sides are threatening negotiations, Reuters said in a Wednesday report.
The U.S. military carried out new strikes in Iran, which said on Tuesday that the U.S. had violated a ceasefire near the contested Strait of Hormuz. The U.S. said its strikes were defensive in nature, the report said. Israel also ramped up bombing in Lebanon.
However, some liquefied natural gas tankers have reportedly transited through the strait in recent days, sparking expectations that the waterway could reopen soon, Reuters reported.