Brent crude oil prices dropped to $105 per barrel on Wednesday amid ongoing peace talks aimed at easing tensions in the Middle East.
According to Oilprice.com data, Brent crude fell from $111, while West Texas Intermediate crude dropped to $98 per barrel.
The decline followed comments by former US President Donald Trump, who said negotiations with Iran were in their final stages.
Despite the development, investors remained cautious over possible disruptions to oil supply in the Middle East, particularly around the Strait of Hormuz.
Analysts warned that oil prices could still surge if tensions persist, with some projecting Brent crude could rise to $120 per barrel. Energy firm Wood Mackenzie also estimated prices could approach $200 if the Strait of Hormuz remains largely shut.
Shipping traffic through the route has reportedly fallen sharply since the US-Israel conflict with Iran escalated earlier this year.
