Oil prices today: Crude steadies after slump as US, Iran eye fresh peace talks

Oil prices fell again on Wednesday, dropping for the second day in a row. This decline came as hopes for renewed talks between the US and Iran reduced worries about long-term supply issues. However, concerns about risks in the Strait of Hormuz still affect the market.Brent crude futures slipped 0.55% to $94.27 a barrel, after a sharp 4.6% drop in the previous session. US West Texas Intermediate (WTI) crude declined 1.1% to $90.24, following a steep 7.9% fall earlier.However, both Brent crude and WTI later edged up 0.56% to $95.32 per barrel and 0.44% to $91.68 per barrel, respectively, reflecting a cautious “wait-and-see” approach among traders.Market sentiment has been influenced by signals that talks between the US and Iran could resume soon. US President Donald Trump said negotiations may restart within days after last weekend’s collapse, raising expectations that oil flows from the region could eventually resume.The ongoing conflict has led to the closure of the Strait of Hormuz, a critical artery for global crude supplies. While a two-week ceasefire is in place, traffic through the waterway remains sharply reduced compared to pre-war levels.Analysts said the market is balancing optimism around diplomacy with continued disruptions. “The result is a market that continues to price optionality around flow disruption rather than a return to equilibrium,” the Schork Group said, as quoted by Reuters.Despite easing prices, supply concerns remain significant. The US has decided not to renew sanctions waivers on Iranian and Russian oil, potentially tightening supply further.Meanwhile, markets are closely watching US inventory data. Industry estimates suggest crude stockpiles have risen for the third consecutive week, while gasoline and distillate inventories may have declined.Earlier this week, prices had already dropped sharply on hopes of renewed talks, though analysts warned that the decline does not fully reflect the scale of supply disruptions caused by the conflict and restricted flows through the Strait of Hormuz. Overall, crude markets remain volatile, with prices driven by a mix of geopolitical developments, supply constraints and cautious investor sentiment.