Oil prices fell sharply after US President Donald Trump said negotiations to end the conflict were making progress, while Iran signalled that “non-hostile” vessels could be allowed passage through the Strait of Hormuz under certain conditions.
Brent crude dropped by around 5% on Wednesday to just under $100 a barrel, reflecting easing market sentiment amid shifting diplomatic signals and continued uncertainty over the war.
Tehran dismissed reports of US-Iran contact as “fake news,” with Foreign Ministry spokesman Esmail Baghaei saying there was no basis for trusting US diplomacy. He questioned Washington’s credibility, pointing to continued strikes and escalating tensions.
Despite the denial, Trump said Vice President JD Vance and Secretary of State Marco Rubio were involved in discussions aimed at ending the conflict. He also repeated claims that US-Israeli strikes had weakened Iran’s leadership and asserted that Tehran would never be allowed to obtain a nuclear weapon.
Iran, however, has rejected suggestions of formal talks, accusing Washington of attempting to influence markets through conflicting statements.
Separately, media reports citing unnamed sources said the US had presented Iran with a 15-point proposal addressing sanctions relief, nuclear limits, missile restrictions and maritime access through Hormuz, though the document has not been independently verified.
In a parallel development, Iran’s mission to the United Nations said “non-hostile vessels” may pass through the Strait of Hormuz if they coordinate with Iranian authorities and comply with safety rules. The statement added that ships must not support actions deemed hostile to Iran.
The mixed signals from Washington and Tehran come as markets react to uncertainty over both the trajectory of the conflict and the security of one of the world’s most critical energy shipping routes.
via BBC
