Oil benchmarks retreat from recent gains as Middle East ceasefire hopes fade ahead of US-China trade discussions.
Brent crude futures fell $1.47, or 1.4%, to $106.30 a barrel, while US WTI futures declined $1.41, or 1.4%, to $100.77. The drop follows a 3% rally on Tuesday amid dimming prospects for a lasting US-Iran ceasefire, keeping the Strait of Hormuz closed.
Both benchmarks have traded near or above $100 since late February, when US and Israeli strikes on Iran triggered the strait’s closure. The waterway typically handles 20% of global oil and LNG volumes. Despite sanctions, China remains Iran’s largest oil buyer.
President Trump will meet Chinese leader Xi Jinping later this week, though he dismissed China’s role in resolving the Iran conflict. Rising fuel costs from higher oil prices continue to pressure the US economy.