-- Global oil prices declined below $100 mark on Wednesday as traders sold off positions while diplomatic efforts toward a peace framework gathered steam.
The Brent futures contract fell 5.8% to $103.45 per barrel and touched a low of $96 per barrel earlier in the session. West Texas Intermediate crude futures dipped 5.6% to $96.51 a barrel.
Analysts noted that the news of a draft peace memorandum and President Trump's pause on naval escorts shifted market focus from supply scarcity to a possible resumption of regional energy flows.
The downturn followed reports that Washington and Tehran are reportedly in the final stages of a 14-point framework to halt hostilities.
Traders moved to price in the eventual return of bottled-up Middle Eastern supply, even as the US Navy maintains its current blockade of Iranian ports, analysts said.
"Oil prices are under renewed pressure as the ceasefire between the US and Iran appears to be holding despite recent escalation in the Persian Gulf," ING analysts said.
Trump cited significant progress toward a settlement with Tehran but offered few specific details, even as he confirmed the US Navy would maintain its blockade of Iranian ports.
While Tehran has yet to respond officially, ANZ analysts noted that crude gave up recent gains as the regional ceasefire appeared to hold despite the diplomatic tension.
With global stockpiles under increasing pressure, investors are now focused on the upcoming EIA inventory report to gauge the severity of the ongoing supply drain.