Oil Prices Today: Brent, WTI Fall After Trump Says Talks Underway With Iran

International crude oil prices fell early Wednesday after a US diplomatic push to end the war with Iran eased geopolitical concerns. The global benchmark Brent crude futures fell nearly 6% to $98.31 per barrel, while West Texas Intermediate futures dropped 5% at $87.65 per barrel.

President Donald Trump said that Washington and Tehran are "in negotiations right now" and indicated Iran is keen to reach a peace agreement, despite the Islamic Republic denying any direct talks with the US, according to reports.

Israeli media indicated that the US was seeking a one-month ceasefire to facilitate talks, while the New York Times reported that Washington had sent Iran a 15-point proposal to resolve the conflict. These developments outweighed concerns over further Middle East escalation after Trump ordered the deployment of roughly 2,000 troops to the region, as the administration considered options to loosen Iran's control over the Strait of Hormuz. 

On Tuesday, oil prices rose about 5% after Tehran denied engaging in negotiations with the US and signaled it had no intention of restoring normal shipping conditions in the Strait, while US allies such as Saudi Arabia and the United Arab Emirates expressed readiness to join the conflict against Iran.

Oil prices remains on track for a substantial monthly surge after a volatile run of trading as investors tracked the fallout from the war, which is now in its fourth week. 

Crude is effectively trading on a geopolitical risk premium as investors hedge against prolonged disruptions and critically low inventories, according to Goldman Sachs. The investment bank's base case assumes flows through the Strait of Hormuz to normalise in April over a four-week period.

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