Oil prices fell slightly in early Asian trade on Wednesday as markets awaited more cues on U.S.-Iran talks after Washington flagged progress in ongoing negotiations.
West Texas Intermediate crude futures for July fell 0.3% to $98.88 a barrel by 19:50 ET (23:50 GMT). They had fallen about 1% on Tuesday.
Oil prices fell on Tuesday after U.S. President Donald Trump said he had postponed an attack against Iran, and that negotiations with Tehran were going well.
Vice President JD Vance echoed Trump’s comments, stating that he believed Iran wanted to make a deal.
Still, losses in crude were limited by signs of continued supply disruptions in the Strait of Hormuz. Traffic through the waterway remained at a fraction of pre-war levels, affecting about 20% of the world’s oil supply.
The U.S. on Monday extended a sanctions waiver on seaborne Russian oil, allowing countries vulnerable to oil import disruptions to secure supply.
Iran, in its latest peace proposal, called for ending hostilities on all fronts, the exit of U.S. forces from the region, and reparations for damage from the war, state media reported on Tuesday.
The U.S. had largely rejected Iran’s earlier proposals, arguing that ending the country’s nuclear ambitions remained a key demand in any negotiation.
Focus is now on upcoming U.S. inventory data for more cues on oil stockpiles. Data from the American Petroleum Institute showed a 9.1 million barrel (mb) draw last week, much bigger than expectations for a 3.4 mb draw.
