Oil prices fall on hopes of US-Iran talks and easing supply concerns

Global oil prices declined for a second consecutive session on Wednesday amid expectations that diplomatic talks between the United States and Iran may resume, raising hopes of easing supply disruptions from the Middle East.

Brent crude futures fell by 52 cents to $94.27 per barrel, while West Texas Intermediate (WTI) dropped $1.04 to $90.24 per barrel after sharp losses in the previous session. The decline follows growing market optimism that renewed negotiations could eventually restore oil flows disrupted by regional tensions.

According to remarks by US President Donald Trump, discussions between US and Iranian officials could resume in Pakistan in the coming days. He suggested that progress in diplomacy could help de-escalate tensions and reopen key shipping routes.

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The conflict has significantly affected global energy markets, particularly after disruptions in the Strait of Hormuz, a vital waterway for oil shipments from the Gulf. Reduced traffic through the route has limited global supply and heightened volatility in energy prices.

Despite talk of a possible ceasefire, shipping through the region remains heavily constrained, with tanker movements far below normal levels. Market analysts note that uncertainty continues to drive price fluctuations as traders weigh the risk of prolonged disruption.

Adding further pressure on supply expectations, US officials indicated that Washington will not renew certain sanctions waivers related to Iranian and Russian oil exports. This move could tighten global crude availability in the short term.

Investors are also awaiting official inventory data from the US Energy Information Administration, which is expected to provide further signals on demand and stock levels.

Analysts say the market remains highly sensitive to geopolitical developments, with prices reacting to both diplomatic signals and physical supply constraints in key producing regions.