Oil Prices Plunge Amid Iran-US Negotiations
Oil prices took a hit on Wednesday, falling over 1% as markets awaited the outcome of talks between Iran and the US. The negotiations are aimed at reaching a final agreement to end their conflict, but progress has been slow.
A source with direct knowledge of the discussions told Reuters that indirect technical talks between the two countries are underway in Doha, mediated by Qatar and Pakistan. However, it appears that US President Donald Trump's son-in-law Jared Kushner and envoy Steve Witkoff will not be meeting directly with Iranian officials.
The oil market is sensitive to developments in the Middle East, where the conflict has led to concerns over supply disruptions. Brent futures fell $1.14, or 1.6%, to $71.81 a barrel at 0859 GMT, while US West Texas Intermediate crude was down $1.11, or 1.6%, to $68.39 a barrel.
PVM Associates analyst Tamas Varga noted that stuttering talks are raising concerns of fresh supply disruptions, but investors remain confident that issues will be resolved soon.