Oil prices fall for a second day on hopes of US-Iran deal
Brent crude fell 1.5% to $103.20 a barrel on Tuesday as hopes grew of a US-Iran agreement. Qatar said differences remain between the two sides.
For information only, not investment advice. Prices change quickly: check the time and source of every figure.
- Brent fell $1.59, or 1.5%, to $103.20 a barrel as of 1700GMT on Tuesday, according to Anadolu Agency.
- West Texas Intermediate fell 63 cents, or 0.7%, to $95.83.
- Qatar is mediating, but says differences remain between Washington and Tehran.
Oil prices fell for a second consecutive session on Tuesday as hopes of a US-Iran agreement to end an eight-month conflict eased concerns about supply, Anadolu Agency reported.
Brent crude futures declined $1.59, or 1.5%, to $103.20 a barrel as of 1700GMT. US benchmark West Texas Intermediate fell 63 cents, or 0.7%, to $95.83 a barrel after briefly trading below $95. Both benchmarks had dropped more than 7% on Monday, when Washington and Tehran signaled openness to negotiations. Gulf News said Brent settled 7.63% lower at $104.77 on Monday, while WTI dropped 7.36% to $96.46.
US President Donald Trump said a deal with Iran was possible. Iranian President Masoud Pezeshkian said Supreme Leader Mojtaba Khamenei had authorized his government to pursue dialogue. Analysts cited by Gulf News pointed to that statement as a factor in the decline.
Qatar is acting as mediator. Its Foreign Ministry spokesman Majed Al Ansari said Qatar is seeking an interim agreement to build trust between Washington and Tehran and pave the way for negotiations on a lasting settlement. A Qatari delegation returned from Tehran on Monday evening after more than three hours of talks with Iranian officials. Both Washington and Tehran are reviewing proposals presented by mediators.
Qatar acknowledged that differences remain and said it had no diplomatic breakthrough to announce. Iranian Foreign Ministry spokesman Esmaeil Baqaei said Tehran would reject diplomacy based on coercion or blackmail, according to IRNA. Gulf News reported that a senior Iranian official said the two sides were still "far" from an agreement.
Prices were volatile during the day. They rose earlier on Tuesday after reports that US forces struck Iran's Qeshm Island in the Strait of Hormuz on Monday, and Brent briefly climbed above $107 a barrel before reversing course. Reuters also flagged fresh supply-disruption concerns from attacks linked to the Iran and Ukraine wars, Gulf News reported.
Gulf News said prices kept sliding on Wednesday in Asia. As of 8.09am Tokyo time, WTI was at $95.60, down 0.89%, and Brent at $103.00, down 1.68%, per OilPrice.com. Murban was at $102.20, down 2.98%. Gulf News noted these are displayed quotes, not independently verified closing prices.
Why it matters
Global oil prices feed directly into the petrol and diesel prices set in Pakistan, so movements in crude affect fuel costs for consumers and businesses.
