Oil prices declined for a second consecutive day on Wednesday, driven by expectations that peace talks between the United States and Iran could resume and ease supply disruptions.
Brent crude futures dropped 0.55% to $94.27 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 1.1% to $90.24, extending losses from the previous session.
The decline comes amid growing optimism that negotiations to end the conflict involving the U.S., Israel, and Iran could restart in Pakistan, potentially leading to the reopening of oil supply routes.
The closure of the Strait of Hormuz—a key global energy corridor—has significantly disrupted crude flows, particularly to Asia and Europe.
Despite a temporary ceasefire, shipping activity through the strait remains limited, with vessel movement far below normal levels.
Analysts say the market continues to reflect uncertainty, balancing hopes for diplomatic progress against ongoing supply risks.
Meanwhile, additional pressure on supply could emerge as the U.S. moves to tighten sanctions on Iranian and Russian oil exports.
Markets are also closely watching upcoming U.S. inventory data for further direction on price trends.
