U.S. crude oil falls below $100 per barrel after Trump says Iran talks in final stages

U.S. crude oil prices experienced a decline below $100 per barrel on Wednesday, following President Donald Trump's announcement regarding the negotiations with Iran, which are now in the final stages.

West Texas Intermediate (WTI) futures decreased nearly 6%, reaching $98.05 per barrel by 12:50 p.m. ET. Similarly, the international benchmark Brent futures also saw a decline of approximately 6%, settling at $104.92 per barrel.

Earlier this week, Trump indicated that renewed military strikes against Iran were postponed in order to allow for additional diplomatic efforts, a move made at the request of Gulf Arab allies. In remarks made to reporters on Wednesday, Trump stated that the administration is in the "final stages" of negotiations with Iran, as reported by the media pool.

Despite Trump's repeated expressions of optimism about reaching a deal with Iran and swiftly concluding the ongoing conflict, tensions have periodically escalated between Washington and Tehran.

The two nations have found themselves in a stalemate in recent weeks, characterized by Tehran's blockade of the Strait of Hormuz and Washington's blockade of Iranian ports. The Strait of Hormuz represents one of the most crucial maritime trade routes for global oil and gas supplies.

Citibank issued a warning on Tuesday, indicating that the market may be underestimating the potential risks associated with prolonged disruptions to oil supplies in the Strait of Hormuz, predicting that Brent crude prices could rise to $120 per barrel in the short term.

Citi analysts conveyed to clients their belief that it "appears increasingly likely" that the Iranian regime will cause disruptions to the flow of oil through the Strait of Hormuz for an extended period.

In a worst-case scenario, where the Strait of Hormuz remains closed until the end of the year, an analysis conducted by Wood Mackenzie suggests that oil prices could surge close to $200 per barrel.

Conversely, the analysis also suggests that prices could decline significantly if a swift peace agreement is achieved between the U.S. and Iran, leading to the reopening of the Strait of Hormuz by June. In this case, spot Brent prices could decrease to approximately $80 per barrel by the end of 2026, as projected by the consulting firm.