Crude oil prices fell sharply on Wednesday after a spokesperson of the Iranian Foreign Ministry claimed that Iran-US truce talks are still underway via Pakistani mediators.
Global benchmark Brent Crude plunged 8% to $103.3 per barrel after closing at levels of $112 per barrel on Tuesday. As of 8:50 p.m. IST, brent traded 6% lower at $105.36 a barrel.
The West Texas Intermediate slipped below $100 per barrel, to touch an intraday low of $97.06 a barrel after falling 8%. As of 9 p.m. IST, WTI traded 4.54% lower at $99.6 per barrel.
Later, American President Donald Trump also reportedly said that Tehran and Washington were in their "final stages of talk".
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Other similar reports indicated that serious efforts are underway to finalise a draft agreement between the warring groups and that Pakistan's army chief may visit Iran on Thursday to announce that the final draft agreement has been completed.
The report further added that the next round of negotiations will be held in Islamabad after the Hajj season on May 30, 2026.
The developments come after Iran's Supreme Leader Mojtaba Khamenei said the country is mounting a unique historical resistance against the US and Israel amid the ongoing conflict in the region.
Oil prices have been on frenzy and spiralled dramatically ever since the United States and Israel launched joint air strikes on Iran on Feb. 28.Global benchmark brent crude has time and again crossed the landmark $120 per barrel level in the past two months.
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In a separate written statement, the Iranian leader according to Fars News Agency said the ongoing war had made the responsibilities of government officials heavier than before, while expressing gratitude for the unity of the nation.
The warning followed remarks by US President Donald Trump, who said Washington could launch fresh strikes on Iran if a long-term settlement is not reached within days.
If the peace deal is clinched, it would finally put an end to the fighting in the region and kick off a much awaited push to settle the turmoil in West Asia.
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