Global oil prices declined on Thursday as markets reacted to emerging diplomatic signals that could ease tensions in the Middle East and reduce risks to energy supplies passing through the Strait of Hormuz.
Brent crude dropped 3.5 percent to 97.5 dollars per barrel, while West Texas Intermediate fell more than 3 percent to 92 dollars during early trading hours.
The decline followed reports that the United States had sent a draft agreement to Iran via intermediaries in Pakistan, outlining a potential framework to formally end hostilities and gradually reopen key shipping routes.
Iran is currently reviewing the proposal and is expected to respond in the coming days. Broader negotiations concerning Tehran’s nuclear program are anticipated to follow at a later stage.
However, Donald Trump cautioned that no final agreement has been reached, warning that it would be premature to assume Iran will accept the terms. He also indicated that military action could resume if compliance is not achieved.
Oil prices faced additional pressure after reports that Washington temporarily suspended plans to support commercial shipping operations through Hormuz. The decision followed a reported restriction by a key Gulf partner limiting the use of US bases and airspace for the operation.
The developments have raised expectations that diplomatic engagement may be replacing military escalation, easing concerns over supply disruptions in one of the world’s most critical energy corridors.
The Strait of Hormuz remains a vital route for global oil and liquefied natural gas shipments, and recent regional tensions have previously driven sharp price increases due to fears of supply shortages.
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