GLOBAL oil prices declined for a second consecutive session on Wednesday as markets reacted to signs that peace negotiations between the United States and Iran could resume, raising the prospect of restored supply from a region disrupted by conflict and shipping constraints.
Brent crude futures fell by 52 cents, or 0.55 per cent, to US$94.27 a barrel in early trade, extending a 4.6 per cent drop in the previous session. US benchmark West Texas Intermediate crude also weakened, shedding US$1.04, or 1.1 per cent, to US$90.24 a barrel after plunging 7.9 per cent a day earlier.
Reuters cited, on Wednesday, that the decline followed remarks by US President Donald Trump, who said talks aimed at ending the conflict involving the United States, Israel and Iran could resume in Pakistan within days.
The earlier collapse of negotiations had prompted Washington to impose restrictions on Iranian ports.
The prospect of renewed diplomacy has bolstered market expectations that tensions could ease, potentially reopening disrupted flows of crude and refined products from the region.
The conflict has severely affected transit through the Strait of Hormuz, a vital artery for oil shipments from the Gulf to global markets, particularly in Asia and Europe.
Despite a two-week ceasefire agreement, vessel movements remain inconsistent, with traffic well below the roughly 130 daily crossings recorded before the war began.
A US official said a naval destroyer had prevented two oil tankers from departing Iran on Tuesday, underscoring continued enforcement risks despite diplomatic overtures.
"While diplomatic headlines suggest the possibility of renewed US-Iran talks and even a temporary easing of transit restrictions, the physical reality on the ground remains fragmented," said Schork Group.
"The result is that the market continues to price in disruption risk rather than a return to balance," it added.
Market sentiment has also been shaped by expectations of tighter supply conditions after US officials indicated that a 30-day sanctions waiver covering Iranian oil cargoes at sea would not be renewed when it expires this week.
A separate waiver related to Russian oil shipments was also allowed to lapse over the weekend.
Attention later in the day is expected to turn to official US inventory data from the Energy Information Administration, which analysts expect to show a modest rise in crude stockpiles alongside declines in distillate and petrol inventories.
Industry data from the American Petroleum Institute indicated that US crude inventories increased for a third consecutive week. - April 15, 2026
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