Oil prices fell sharply on Wednesday as hopes for a possible US-Iran deal eased fears of supply disruptions in key Gulf shipping routes.
Brent crude settled USD 6.26, or 5.63%, lower at USD 105.02 a barrel, while US West Texas Intermediate crude fell USD 5.89, or 5.66%, to USD 98.26, according to Reuters and The Star.
US President Donald Trump said negotiations with Iran were in their final stages, while warning that Washington could launch further strikes if no agreement is reached. He said the United States was prepared to wait a few days for Tehran’s response.
Shipping data showed two Chinese oil tankers exiting the Strait of Hormuz, a tentative sign of easing pressure in the Gulf, according to Investing.
The oil drop eased inflation concerns and prompted investors to move into government bonds. The benchmark US 10-year Treasury yield fell 9.4 basis points to 4.576%, while the US dollar slipped from a six-week high.
Read: Oil Prices Rise as Gulf Attacks Hit Markets
Wall Street advanced as lower oil prices and falling yields lifted sentiment ahead of Nvidia’s results. Anadolu Agency reported the Dow Jones Industrial Average rose 1.31%, the S&P 500 gained 1.08%, and the Nasdaq climbed 1.55%.
Gold rose more than 1% as softer yields and a weaker dollar supported demand.
