Oil prices retreat after rising over 3% Tuesday amid diplomatic progress between Washington and Tehran despite regional clashes.
West Texas Intermediate crude fell to $91.90 per barrel in Asian trading Wednesday, paring gains after a 3% rally the prior session. The decline comes as traders assess potential progress in US-Iran negotiations aimed at easing tensions and reopening the Strait of Hormuz to shipping.
Prices had surged Tuesday on reports of fresh military strikes, including US self-defense airstrikes in southern Iran and Iranian claims of downing American drones. A seven-week ceasefire remains fragile, with Iran condemning recent US actions as violations of the truce.
A proposed memorandum of understanding could pause hostilities and lift blockades, though deeper disputes—including Iran’s nuclear program—remain unresolved. Regional stability hinges on a 60-day negotiation window if the initial deal is finalized.