Oil prices extended their slide on Wednesday, continuing a decline that has now run for three consecutive sessions as investors weighed the prospect of a ceasefire between the United States and Iran and a possible reopening of the Strait of Hormuz.
Brent crude futures fell 92 cents, or around 1.2%, to $78.44 a barrel by 03:30 GMT, bringing losses since the start of the week to more than 12%. US West Texas Intermediate dropped $1.07, or 1.4%, to $74.70 a barrel, down 11% over the same period.
The move follows remarks from Qatar on Tuesday that mediators were making progress toward ending the conflict, a signal that pushed Brent below $80 a barrel at settlement for the first time since July 13. Tehran denied that any talks were under way, even as US President Donald Trump said they were.
Priyanka Sachdeva, head of market research at Phillip Nova, said that “while the immediate geopolitical risk premium is fading, the broader supply picture warrants caution.”
