WTI Crude Price Tumbles to Two-Week Low Amid Easing Geopolitical Fears

West Texas Intermediate (WTI) crude oil prices continue to decline, hitting a two-week low on Wednesday as fears of supply disruptions in the Middle East ease. The contract has now fallen for five consecutive sessions and is trading at around $88.00, down over 1% on the day.

The improvement in market sentiment comes after reports that Saudi Arabia is working to bring an oil pipeline back online and expectations that a diplomatic path may be emerging to end the US-Iran conflict and reopen the Strait of Hormuz. Iran has offered to reopen the waterway in exchange for a de-escalation of US military activity.

However, the geopolitical backdrop remains tense, with US President Donald Trump saying he faces a choice between reaching an agreement with Iran or 'annihilating' the Islamic Republic if the conflict remains unresolved. Tighter US sanctions targeting Iranian aviation are also set to take effect on Wednesday.