Oil prices moved lower on Wednesday after strong gains in the previous session, as investors waited for updates on talks between the United States and Iran aimed at easing tensions and reopening key shipping routes.
Brent crude dropped by $1.42, or 1.43%, to $98.16 per barrel. U.S. West Texas Intermediate (WTI) crude also fell by $1.66, or 1.77%, to $92.23 per barrel.
The decline came after oil prices jumped more than 4% a day earlier following reports of new U.S. strikes inside Iran, which increased fears that efforts to calm the conflict and reopen the Strait of Hormuz could face delays.
Traders are now closely watching the progress of U.S.-Iran negotiations as security tensions continue in the region. At the same time, reports that some oil tankers have started passing through the Strait of Hormuz again have raised hopes that global oil supplies could begin returning to normal.
