Rumors of Iran-U.S. talks trigger oil prices to plummet over 6%

LootboxPhobia · 2026-03-25T02:43:23+00:00

On March 25, oil prices plummeted over 6% during Asian trading hours, with Brent crude breaking below $100 per barrel, as signs of easing Middle East tensions reduced concerns about supply disruptions. The news of the U.S. sending a peace plan to Iran boosted ceasefire hopes, although uncertainty remains regarding negotiations between both parties. Analysts point out that the cooling of tensions is putting pressure on oil prices, but the market may still remain volatile.

LootboxPhobia

2026-03-25 02:43:23

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March 25 (Reuters) — During Wednesday’s Asian trading session, oil prices plummeted over 6%, with Brent crude falling below $100 per barrel, as signs of a potential de-escalation in Middle East tensions eased market fears of supply disruptions.

As of 21:18 Eastern Time (01:18 GMT), May-dated Brent crude futures dropped 6.3% to $97.90 per barrel, while West Texas Intermediate (WTI) futures declined 5.2% to $87.52 per barrel.

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The decline in oil prices was driven by reports that the U.S. has sent a 15-point plan to Iran aimed at ending regional hostilities, which boosted hopes for a ceasefire and reduced risks to key oil shipping routes, including the Strait of Hormuz.

U.S. President Donald Trump said Washington is “currently negotiating,” adding that Tehran “has a reasonable position” and appears eager to reach a peace agreement.

Trump previously described talks with Iran on Monday as “productive,” but Iranian officials denied any negotiations are underway, highlighting ongoing uncertainty surrounding the situation.

In recent trading sessions, oil markets surged amid concerns that escalating tensions could disrupt supply from the Middle East, a major oil-producing region. The focus was on the Strait of Hormuz, a critical choke point for global oil flows.

Wednesday’s sharp sell-off reflected a rapid unwinding of geopolitical risk premiums, as traders reacted to signs that the situation might be easing.

Analysts said that while the prospect of de-escalation puts downward pressure on oil prices, conflicting signals from Washington and Tehran could keep the market volatile.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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