Oil prices fall for second day on hopes of renewed US-Iran talks

Global oil prices declined for a second consecutive day on Wednesday, driven by growing optimism over a possible resumption of talks between the United States and Iran.

Investor sentiment improved after US President Donald Trump suggested that negotiations aimed at ending the ongoing conflict involving the US, Israel and Iran could restart within days, potentially in Pakistan.

The renewed diplomatic signals follow a breakdown in discussions over the weekend, which had led to heightened tensions and concerns over supply disruptions, particularly after restrictions were imposed on Iranian ports and shipping routes linked to the Strait of Hormuz.

As expectations of dialogue strengthened, crude prices retreated from recent highs. Brent crude, the global benchmark, slipped below the $95 per barrel mark, having experienced sharp fluctuations during the previous session. It had briefly surged close to $100 per barrel before easing.

Similarly, US benchmark West Texas Intermediate (WTI) also recorded a notable decline, falling back after an initially strong opening. Prices cooled to around the $90 per barrel level after touching significantly higher levels earlier in the session.

The downward movement in oil prices had begun earlier amid indications that Israel and Lebanon were open to further negotiations, adding to hopes of reduced geopolitical tensions in West Asia.

Market participants said expectations of diplomatic progress have helped calm fears of prolonged supply disruptions, contributing to the recent softness in crude prices.

In early trading on Wednesday, both Brent and WTI remained under pressure, reflecting continued optimism that negotiations could stabilise the region and improve the global supply outlook.

With IANS inputs