Oil prices retreat on hopes of US-Iran ceasefire progress but face pressure from renewed military actions in the Middle East.
West Texas Intermediate crude fell to $90.75 in early European trading Wednesday, extending losses after US-Iran peace talks raised supply expectations. The decline followed President Trump’s statement that negotiations to extend a ceasefire and reopen the Strait of Hormuz were advancing.
Prices had climbed earlier in the week on geopolitical tensions but reversed as optimism over diplomatic progress weighed on the market. However, fresh US strikes on Iran and Tehran’s vow to retaliate against ceasefire violations clouded the outlook, limiting further downside.
Traders now await the American Petroleum Institute’s weekly inventory report, due later Wednesday. A larger-than-expected draw could signal stronger demand and support prices, while a build may reinforce bearish sentiment.