LONDON, May 20 Oil prices lost more than 2% on Wednesday after U.S.
President Donald Trump again asserted that the Iran war will end “very quickly”, though investors remain wary about the outcome of peace talks as disruption to Middle Eastern supply continues
Brent crude futures fell $2.58, or 2.3%, to $108.70 a barrel by 1211 GMT and U.S. West Texas Intermediate futures were down $2.07, or 2%, at $102.08. Both contracts were heading for their biggest daily drops in percentage and absolute terms in two weeks. “Prices are likely to still exhibit some upside potential even if a deal is concluded, given that supply will likely not return to pre-war levels immediately,” said LSEG research analyst Emril Jamil.
Both benchmarks fell nearly $1 on Tuesday after U.S. Vice President JD Vance said that the U.S. and Iran had made progress in talks. But Trump also said that the United States may need to strike Iran again and had been an hour away from ordering an attack before its postponement.