Oil Prices Fall as U.S.-Iran Talks Raise Supply Hopes

Oil prices have fallen below $100 a barrel for a sixth consecutive session as markets react to reported progress in U.S.-Iran talks and the expected restart of Saudi Arabia’s East-West Pipeline, an alternative route around the Strait of Hormuz. Brent traded around $98-$99 a barrel and West Texas Intermediate around $89-$90, down from recent highs above $103-$110, while prediction markets have reduced the likelihood of a new record. The decline has also been fueled by unwinding speculative positions, rising U.S. crude inventories and expectations of additional Saudi and Iraqi supplies, although diesel prices and broader energy costs remain elevated. Iran has offered to reopen the Strait if the United States lifts its blockade, but no agreement has been reached and shipping remains severely constrained; Iranian state media previously disputed the proposal. President Donald Trump has alternated between threatening Iran and praising the talks, while analysts warn that a diplomatic breakdown, renewed Middle East tensions or disruptions to production and shipping could quickly reverse the decline.