Oil Prices Fall Below $99 Amid US-Iran Talks, Saudi Pipeline Revival

Oil prices have fallen below $99 per barrel for the first time in six sessions as renewed US-Iran talks and efforts to restore Saudi Arabia's East-West pipeline alleviate concerns over oil supplies.

US President Donald Trump said officials had a 'very productive' meeting with Iranian envoys, while indicating he was weighing whether to pursue a negotiated agreement or 'annihilate the Islamic Republic.'

A senior Iranian government official stated that Tehran had conveyed a proposal to Washington under which Iran would reopen the Strait of Hormuz within seven days if the United States took steps towards lifting a blockade that has severely curtailed Iranian oil exports.

The Saudi pipeline's planned reopening adds to expectations of improved supply flows, which have eased some inflation concerns. However, hawkish comments from Federal Reserve officials strengthened expectations of further interest rate increases, keeping the US dollar firm at around 100.5 on Wednesday.