Oil prices dropped approximately 4% on Wednesday following reports that the U.S. presented Iran with a 15-point proposal to end the ongoing war, raising hopes for a ceasefire. Brent futures fell by $3.96 to $100.53 per barrel, while U.S. West Texas Intermediate (WTI) crude decreased by $3.57 to $88.78. A senior Iranian official indicated that Pakistan or Turkey might host discussions to de-escalate the conflict, although Iran denied any direct negotiations.
Analysts noted that the price decline was linked to the U.S. proposal, but Iran has yet to show a positive response. The recent volatility in oil prices has reached levels not seen since early 2022 for Brent and mid-2020 for WTI. The ongoing war has severely disrupted oil and liquefied natural gas shipments through the Strait of Hormuz, resulting in a daily loss of around 20 million barrels of crude.
In other developments, India secured its first cargo of Iranian liquefied petroleum gas in years, and Japan’s Prime Minister requested additional coordinated oil stockpile releases from the International Energy Agency. Meanwhile, Russian Baltic ports halted oil loadings due to Ukrainian drone attacks, marking a significant escalation in the conflict.
