Oil prices fell on Wednesday after surging 4% in the previous session, as traders awaited clearer signals on complex negotiations between Iran and the US after renewed hostilities disrupted efforts to reopen the Strait of Hormuz.
Brent crude futures fell $1.42, or 1.43%, to $98.16 a barrel by 02:53 GMT, while US WTI crude futures dropped $1.66, or 1.77%, to $92.23 a barrel.
Oil prices jumped on Tuesday after the US military launched fresh strikes in Iran, undermining hopes that emerged earlier this week for a possible agreement between Washington and Tehran to end the war.
Iran said on Tuesday that the Washington had violated the ceasefire by striking targets near the Strait of Hormuz, while Washington said the attacks were defensive in nature.
Following the ceasefire in April, both sides had signaled progress in talks aimed at reopening the Strait of Hormuz, a key artery for global oil and gas flows. However, the escalation in fighting now threatens those negotiations.
Israel also intensified its bombardment of Lebanon on Tuesday, adding pressure to peace efforts.
Oil prices fell on Wednesday after surging 4% in the previous session, as traders awaited clearer signals on complex negotiations between Iran and the US after renewed hostilities disrupted efforts to reopen the Strait of Hormuz.
Brent crude futures fell $1.42, or 1.43%, to $98.16 a barrel by 02:53 GMT, while US WTI crude futures dropped $1.66, or 1.77%, to $92.23 a barrel.
Oil prices jumped on Tuesday after the US military launched fresh strikes in Iran, undermining hopes that emerged earlier this week for a possible agreement between Washington and Tehran to end the war.
Iran said on Tuesday that the Washington had violated the ceasefire by striking targets near the Strait of Hormuz, while Washington said the attacks were defensive in nature.
Following the ceasefire in April, both sides had signaled progress in talks aimed at reopening the Strait of Hormuz, a key artery for global oil and gas flows. However, the escalation in fighting now threatens those negotiations.
Israel also intensified its bombardment of Lebanon on Tuesday, adding pressure to peace efforts.
