Brent crude fell below $72 per barrel, reaching its lowest level since February as investors welcomed progress in U.S.-Iran talks and improving security around the Strait of Hormuz.
LONDON — Brent crude prices fell nearly 2% Wednesday, reaching their lowest level since late February, as investors remained focused on indirect negotiations between the United States and Iran and growing confidence that tensions in the Middle East may continue to ease.
The benchmark Brent crude contract for September delivery closed at $71.57 per barrel, down 1.87%, or $1.35, on the Intercontinental Exchange (ICE) in London. The previous session ended at $72.92 per barrel.
Oil prices have retreated steadily this week as markets responded positively to indirect peace talks held in Doha, Qatar, between Washington and Tehran.
President Donald Trump said Wednesday that Iran’s “denuclearization” process is progressing well and described recent meetings between the two countries as “very good,” despite conflicting reports surrounding the negotiations and recent U.S. military strikes against Iranian targets.
Iran also announced the creation of a communication mechanism to address potential violations of the memorandum of understanding reached during the talks in Qatar.
Additional downward pressure on oil prices came after the United States and a dozen Arab nations reaffirmed their commitment to maintaining security in the Strait of Hormuz during a meeting of senior military officials in Bahrain.
The Strait of Hormuz remains one of the world’s most critical energy corridors, carrying roughly one-fifth of global oil shipments, making its stability a key factor for international energy markets.
