Oil prices plunge as hopes for US-Iran deal ease supply fears

Oil prices extended losses Wednesday, with Brent crude falling more than 9% to below $100 a barrel, as hopes for a possible US-Iran agreement eased concerns over disruptions in the Strait of Hormuz.

International benchmark Brent crude futures were trading at about $99.8 per barrel as of 1035 GMT, down 9.2%, after falling roughly 4% in the previous session.

US West Texas Intermediate crude futures also dropped more than 10% to $91.3 per barrel.

The decline followed reports that Washington and Tehran are nearing a preliminary agreement to end the conflict and establish a framework for broader nuclear negotiations.

According to the reports, US officials believe an initial deal could be reached soon, while Washington awaits Tehran's response on several key issues.

US President Donald Trump also said the United States would temporarily halt "Project Freedom," a military operation launched to escort commercial vessels through the Strait of Hormuz, citing progress in negotiations.

The Strait of Hormuz, one of the world's most important oil transit routes, has been at the center of market concerns in recent weeks as military escalation disrupted shipping traffic and raised fears of a major supply shock.

The US administration said about 23,000 seafarers from 87 countries remain stranded in the Persian Gulf because of the disruption.

Despite easing geopolitical tensions, higher energy costs have already begun weighing on global demand, adding further pressure to oil prices.