Oil prices fell around 4% on Wednesday, March 25, 2026, on the prospect of a possible ceasefire easing supply disruptions from the key Middle East producing region.
This comes after reports that the United States sent Iran a 15-point plan to end the war between them.
Brent crude futures fell $4.89, or 4.7%, to $99.60 a barrel by 0335 GMT, after declining to as low as $97.57.
U.S. West Texas Intermediate (WTI) crude futures were down $3.54, or 3.8%, at $88.81 a barrel, after falling to as low as $86.72.
Both benchmarks rose nearly 5% on Tuesday, before paring gains in volatile post-settlement trading.
“Expectations of a ceasefire have risen slightly and profit-taking is leading the market,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
“But the outlook remains uncertain as to whether negotiations will succeed, limiting selling,” he added.
U.S. President Donald Trump said on Tuesday the U.S. was making progress in negotiating an end to the war with Iran, while a source told Reuters that Washington had sent Iran a 15-point settlement proposal.
Israel’s Channel 2 said the U.S. was seeking a month-long ceasefire to discuss the plan, which includes the dismantling of Iran’s nuclear programme, ceasing support for proxy groups, and the reopening of the Strait of Hormuz.
Some analysts are sceptical on the progress of such talks, expecting markets to remain volatile.
Phillip Nova’s senior market analyst Priyanka Sachdeva said Middle East developments would remain the “dominant price driver” keeping oil prices moving in a wide range in the near term.
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