Oil Prices Plunge on Improved Supply and Hopes for US-Iran Talks

Oil prices dropped on Wednesday due to improved supply and hopes for US-Iran diplomatic talks. Brent crude futures fell by $1.09, or 1.1%, to $98.16 a barrel, while West Texas Intermediate futures declined by $1.50, or 1.67%, to $89.01 per barrel.

The decline in oil prices was attributed to the resumption of Saudi Arabia's East-West pipeline to Yanbu, which bypasses the Strait of Hormuz and restores roughly 4% of global oil flow. This development eased supply fears in the market.

Hopes for US-Iran diplomacy also contributed to the decline in oil prices, as a meeting between envoys from both countries was seen as a positive step towards resolving the conflict.