Oil Prices Decline for Third Day as U.S.-Iran Negotiations Continue

Oil prices declined on Wednesday for a third consecutive session as negotiations aimed at reopening the Strait of Hormuz continued. The U.S.-Iran conflict has raised concerns about supply disruptions, with Brent crude futures down $1.1 or 1.34% to $78.30 a barrel and U.S. West Texas Intermediate crude down $1.43 or 2% to trade at $74 a barrel.

Analysts warn that sustained disruptions could lead to significant hikes in oil prices, with JPMorgan estimating every additional month of disruption could lift Brent crude prices by about $7 to $8 a barrel. Goldman Sachs also cautioned that Brent could rise to $120 a barrel if disruptions continue.

However, some experts anticipate a decline in oil prices by 2027, citing expanding supply outside the conflict zone and OPEC+ raising production targets.