Brent crude oil futures dropped about 6% to below $103 per barrel on Wednesday, extending a 4% decline from the previous session, as hopes for a diplomatic breakthrough between the US and Iran increased. Tehran said it is reviewing a US-backed proposal to end the two-month conflict, with a response expected via Pakistani mediators once a decision is reached. President Donald Trump signaled that a deal could reopen the Strait of Hormuz, but warned of more intense strikes if Iran fails to comply. Earlier reports indicated Washington had presented a draft framework for ending the war, with markets anticipating a reply within days. Trump also said the US would pause “Project Freedom,” a naval effort to escort vessels through the strait, citing progress in talks. Around 23,000 seafarers remain stranded in the Persian Gulf, and despite easing tensions, supply disruptions and high energy costs continue to weigh on global demand, with shipping flows likely to take weeks to normalize.

Brent crude oil futures dropped more than 8% to below $101 per barrel on Wednesday, extending a 4% decline from the previous session, after reports that the US and Iran are nearing a deal to end the conflict. According to Axios, US officials believe a preliminary agreement could soon be reached, outlining a framework for broader nuclear talks. President Donald Trump also said the US would temporarily halt “Project Freedom”, a military operation launched to escort vessels through the Strait of Hormuz, citing progress in negotiations. The administration noted that about 23,000 seafarers from 87 countries remain stranded in the Persian Gulf due to the disruption. Despite easing tensions, elevated energy costs have already started to weigh on global demand, and even if the strait reopens, a full recovery in shipping and trade flows is expected to take several weeks.

Brent crude futures dropped below $107 per barrel on Wednesday, declining for the second straight session after US Secretary of State Marco Rubio announced that “Operation Epic Fury is concluded,” noting that its objectives had been met. President Donald Trump also said the US would temporarily pause its effort to assist stranded vessels in exiting the Strait of Hormuz, allowing time to assess whether a potential agreement with Iran to end the conflict could be reached. However, the US blockade on ships traveling to and from Iranian ports will remain in place. Washington is now turning its attention to reopening the strait, facing mounting pressure from other nations and growing domestic opposition to the war. These developments unfold against a backdrop of continued deadlock between the US and Iran, with little headway toward renewed negotiations, as Tehran maintains that any talks hinge on the removal of the US naval blockade.