Brent Extends Losses
2026-05-06 13:58
By
Agna Gabriel
1 min. read
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.