Global oil prices declined on Wednesday as renewed peace talks aimed at easing tensions in the Middle East raised hopes of reduced supply disruptions in the region.
Data from Oilprice.com showed that Brent crude dropped to $105 per barrel, down from $111 recorded on Tuesday. West Texas Intermediate also declined to $98 per barrel from $105 the previous day.
The price movement followed comments by US President Donald Trump, who said negotiations with Iran were in their final stages. However, he warned that additional attacks could occur if Tehran fails to agree to a deal.
According to Reuters, investors remain cautious despite signs of diplomatic progress, as disruptions to Middle Eastern oil supply continue to affect global markets.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Tehran was prepared to work with other coastal nations to develop protocols for safe shipping traffic in the region, although he did not provide additional details.
Despite the decline in prices, market analysts warned that global oil supply concerns remain significant. Some analysts projected that Brent crude could still rise to $120 per barrel in the near term, arguing that markets may be underestimating the risk of prolonged disruptions.
Energy consultancy Wood Mackenzie also warned that crude oil prices could approach $200 per barrel if the Strait of Hormuz remains largely closed until the end of the year.
Meanwhile, shipping activity through the Strait of Hormuz showed slight improvement on Wednesday, as three supertankers carrying about 6 million barrels of Middle East crude resumed journeys to Asian markets after remaining stranded in the Gulf for more than two months.
Reuters, citing shipping data from LSEG and Kpler, reported that another vessel was also entering the strait as maritime activity gradually resumed.
The vessels were among a limited number of supertankers that have exited the Gulf this month using a transit route approved by Iran.
The ongoing US-Israel conflict with Iran, which reportedly began on February 28, has significantly disrupted shipping through the Strait of Hormuz, a strategic route responsible for transporting nearly one-fifth of global oil and energy supplies.
Reports showed that the South Korean-flagged Very Large Crude Carrier Universal Winner, carrying 2 million barrels of Kuwaiti crude loaded on March 4, was among the ships exiting the strait.
Kpler data indicated that the tanker was heading to Ulsan in South Korea, home to SK Energy, the country’s largest refiner, where it is expected to discharge its cargo on June 9.
Before the conflict, the Strait of Hormuz recorded an average of 125 to 140 daily ship passages. However, shipping activity has dropped sharply in recent weeks, leaving nearly 20,000 seafarers stranded aboard hundreds of vessels inside the Gulf.
Recent shipping data showed that traffic through the strait has averaged around 10 vessels daily, including cargo ships, chemical tankers, and liquefied petroleum gas carriers, while crude oil tankers continue to make up a relatively small portion of total movements.
According to Kpler and SynMax satellite analysis, about 10 ships crossed the strait within the last 24 hours, reflecting cautious but gradual recovery in maritime operations.
