Brent and WTI prices decline
Brent crude dropped to $105 per barrel on Wednesday as peace talks aimed at reducing tensions in the Middle East lifted market sentiment.
Data from Oilprice.com showed Brent fell by $6 from $111 recorded on Tuesday.
At the same time, West Texas Intermediate also declined to $98 per barrel from $105 the previous day.
The drop reflected easing concerns over immediate supply disruption.
Iran talks influence oil market sentiment
The market reacted after US President Donald Trump said negotiations with Iran had entered the final stage.
However, he warned that more attacks could follow if Iran refuses to agree to a deal.
As a result, investors responded cautiously while tracking diplomatic developments.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei also said Tehran was ready to work with coastal states to create safety protocols for shipping traffic.
This signaled possible efforts to stabilize maritime movement in the region.
Analysts remain cautious over supply risks
Despite signs of progress, analysts still expect market volatility.
They warned that global oil supply remains tight.
According to market experts, any prolonged disruption could quickly push prices higher.
Some analysts projected Brent crude could rise to $120 per barrel in the near term.
Meanwhile, energy research firm Wood Mackenzie said crude could approach $200 if the Strait of Hormuz remains heavily restricted through the end of the year.
Therefore, traders continue to watch developments closely.
Supertankers resume movement through Strait of Hormuz
Shipping activity showed slight improvement on Wednesday.
Three supertankers carrying crude oil to Asian markets crossed the Strait of Hormuz after remaining in the Gulf for more than two months.
Together, the vessels carried about 6 million barrels of Middle East crude.
Another tanker also entered the route during the same period.
These ships followed a transit corridor Iran directed vessels to use.
This development offered a modest sign of recovery in oil transportation.
War sharply reduces shipping traffic
The US-Israel conflict with Iran, which started on February 28, severely disrupted shipping through the Strait of Hormuz.
The waterway normally handles about one-fifth of global oil and energy supply.
Before the conflict, daily traffic averaged between 125 and 140 ship movements.
Since then, traffic has dropped sharply.
Recent tracking data showed only about 10 vessels entering and leaving the strait daily.
This includes cargo ships, chemical tankers, and liquefied petroleum gas carriers.
Crude oil tankers still account for a small share of total movement.
Asian-bound oil shipments continue
One South Korean-flagged Very Large Crude Carrier, Universal Winner, exited the strait carrying 2 million barrels of Kuwaiti crude.
The vessel loaded its cargo on March 4.
It is heading to Ulsan, where South Korea’s largest refiner, SK Energy, will receive the shipment.
Earlier, two Chinese tankers also moved through the route.
Although shipping remains limited, these movements suggest gradual improvement in oil transport across the Gulf.
Still, market uncertainty remains high as investors monitor both diplomacy and supply risks.
