Oil prices slipped below the $100 per barrel mark on Wednesday as diplomatic efforts between the United States and Iran raised hopes of an easing in tensions around the Strait of Hormuz, a key route for global oil shipments.
Brent crude was trading at about $98.18 per barrel, while US West Texas Intermediate stood at around $90.64, according to market data supplied on Wednesday.
The decline came as Iran said it had received a response from the United States to its latest proposal aimed at reviving a collapsed ceasefire and easing the conflict between the two countries.
According to Reuters, Iranian Foreign Minister Abbas Araqchi received the US response through Qatari mediators after talks between the two sides last week on the sidelines of the United Nations General Assembly in New York. Iran’s proposal includes a seven-day plan under which the United States would lift its blockade of Iranian ports while Tehran would reopen the Strait of Hormuz and restore normal maritime passage, according to Reuters.
However, the two sides remain divided over the order in which the proposed steps should be implemented, meaning there has been no agreement to reopen the strategic waterway. The Strait of Hormuz is one of the world’s most important oil shipping routes, and the conflict has substantially disrupted the movement of crude oil, refined products and natural gas through the waterway. Shipping through the strait has increased in recent weeks, although vessels have been charging high fees to navigate the route because of the security risks. Reuters reported that two ships were hit by projectiles on Tuesday, according to Britain’s UKMTO maritime security body.
Oil prices have remained highly sensitive to developments around the conflict. Brent had climbed above $100 per barrel earlier in September as attacks on shipping and energy infrastructure heightened fears of further supply disruptions.
The latest movement below $100 therefore reflects changing expectations around supply disruption rather than evidence of a sudden collapse in global oil demand.
Reuters reported on Wednesday that analysts had raised their 2026 oil-price forecasts because disruptions to Gulf exports, particularly through the Strait of Hormuz, continue to offset concerns about demand growth.
The development also comes as Qatar continues to mediate between Washington and Tehran, with Doha saying it hopes its shuttle diplomacy can help the two sides reach an agreement and avoid further repercussions from the conflict.
– with Agencies inputs --
