Oil Prices Tumble on Diplomatic Progress, Supply Eases

Oil prices fell on Wednesday due to eased supply concerns and diplomatic efforts between the US and Iran. The partial restart of Saudi Arabia's East-West Pipeline also contributed to downward pressure.

US President Donald Trump discussed Iran during a meeting with Ukrainian President Volodymyr Zelenskyy in New York, where he said that US officials had met with members of the Iranian delegation. He stated, 'There was a meeting that lasted about three hours. It went very well. It ended about an hour ago.'

The market also reacted to reports of a meeting between Foreign Minister Abbas Araghchi and Trump's advisers Steve Witkoff and Jared Kushner. This meeting focused on Iran's conditions for reopening the Strait of Hormuz, according to Iranian state television.

Additionally, the American Petroleum Institute (API) estimated that US commercial crude oil inventories rose by around 1.8 million barrels last week, which added to downward pressure on oil prices. The market had expected inventories to decline by 500,000 barrels.