Crude oil prices posted steep declines on Wednesday, prompted by reports that the United States and Iran are making significant headway toward a deal to resolve their conflict. The potential agreement has shifted market focus, leading to reduced concerns over geopolitical supply disruptions.
Brent crude lost 6.43% by late afternoon in Bangkok, falling to $102.81 per barrel. West Texas Intermediate registered an even larger slide, dropping 7.24% to $94.87. These declines followed news that U.S. officials believe a concise memorandum of understanding with Iran is within reach, as reported by Axios. The draft would lay a foundation for broader nuclear discussions aimed at bringing an end to the ongoing war.
Contributing to the downward pressure on oil earlier today was the announcement from the U.S. President Donald Trump said on Tuesday via Truth Social that the U.S. is temporarily stopping “Project Freedom,” the recently initiated operation to provide military escorts for merchant ships through the strategic Strait of Hormuz.
According to Trump, the decision to pause Project Freedom is intended to allow time for negotiating parties to finalize and potentially sign a comprehensive deal with Iran. The announcement was made via a post on Truth Social, where Trump cited “great progress” toward resolving outstanding disputes.
