U.S. Crude Falls Below $100 as Trump Signals Iran Deal Near

CNBC reported Wednesday that President Donald Trump told reporters the administration is now in the “final stages” of negotiations with Iran, sending crude oil prices sharply lower.

Oil Prices Post Sharp Decline on Diplomacy Hopes

West Texas Intermediate futures shed more than 5% on the day. The contract settled at $98.26 per barrel, dipping below the psychologically significant $100 threshold for the first time in recent sessions. International benchmark Brent futures mirrored the move, closing at $105.02 per barrel after a similar decline.

The drop came directly after Trump’s remarks to reporters, which were relayed through a White House pool report. The president also indicated earlier this week that he had postponed plans for renewed military action against Iran. Gulf Arab allies reportedly urged Washington to allow more time for diplomatic channels to work.

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Background: Hormuz Standoff Has Gripped Markets for Weeks

The crude oil Iran talks have played out against an increasingly tense backdrop. Iran has maintained a blockade of the Strait of Hormuz, one of the most critical chokepoints for global energy supply. The United States responded with its own blockade of Iranian ports, leaving both sides locked in a prolonged standoff.

Trump has delivered optimistic signals about a swift resolution before, only for tensions to flare again. Markets have remained volatile throughout, with traders weighing the risk of a prolonged supply disruption against the possibility of a sudden diplomatic breakthrough.

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Analysts See Wide Range of Possible Outcomes

Wall Street is divided on where oil goes from here. Citigroup analysts warned clients Tuesday that markets are underestimating how long the Hormuz disruption could last. The bank sees Brent trading as high as $120 per barrel in the near term given that risk.

Energy consultancy Wood Mackenzie mapped out starker scenarios. If Hormuz remains effectively closed through year-end, Brent could approach $200 per barrel in a worst-case outcome. A fast peace deal that reopens the waterway by June, however, would reverse much of the premium. Brent could retreat toward $80 per barrel by late 2026 under that rosier path, the firm said.

For now, Trump’s latest comments gave traders enough reason to price in at least a partial reduction in geopolitical risk.

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