U.S. crude futures slipped under the $100 threshold on Wednesday as President Donald Trump indicated that negotiations with Iran are approaching a conclusion. The market responded to the latest diplomatic developments, reflecting investor focus on potential shifts in Middle East supply dynamics.
West Texas Intermediate fell more than 5% to hover around $98-$99 a barrel. The international standard, Brent crude, similarly dropped by over 5% to $105 per barrel.
At the morning session of Asian market trading hours on Thursday, oil prices slightly rose around 0.50% for both Brent and WTI futures.
The President disclosed to reporters on Wednesday that the United States is “in the final stages” of discussions with Iran, having earlier this week paused renewed military action to allow further diplomatic efforts—an approach he attributed to requests from Gulf partners.
Trump added that while the U.S. is ready to take additional action against Tehran if talks fail to secure a peace agreement, administration officials are prepared to give negotiations a brief extension to secure satisfactory results. He described the diplomatic situation as highly sensitive and said it could deteriorate rapidly.
According to Al Hadath sources, U.S.–Iran talks have made significant progress, with the final terms of an agreement said to be nearing completion. A formal announcement may occur within hours should scheduled diplomatic travel—notably Pakistan’s military leader visiting Tehran—not proceed, suggesting the process is close to resolution.
Shipping data from LSEG and Kpler highlighted that three supertankers carrying Middle East crude toward Asia transited the Strait of Hormuz on Wednesday, after spending over two months in Gulf waters. Another large tanker was also seen entering the area, potentially signaling anticipation of renewed or eased flows.
