Global oil prices dropped sharply on Wednesday, with Brent crude falling nearly 6% to $98.30 per barrel. This decline came after former US President Donald Trump sent a 15-point peace plan to Iran, raising hopes of reduced tensions in the Middle East.
West Texas Intermediate, another key oil benchmark, also fell by about 5.01%, reaching $87.72 per barrel. The drop follows a recent surge in oil prices, which had risen بسبب concerns over possible supply disruptions in the region. Markets reacted quickly to signs of diplomacy, as traders became more confident that a wider conflict could be avoided.
A key development was Iran’s announcement that “non-hostile” vessels would be allowed to pass through the Strait of Hormuz. This route is one of the world’s most important oil shipping lanes. Any disruption there can affect global oil supply and push prices higher. The easing of restrictions helped calm fears about supply shortages.
Asian stock markets responded positively to the news. Major indexes such as Japan’s Nikkei and South Korea’s Kospi rose by more than 3%. Investors viewed the peace proposal and improved regional stability as positive signals for global trade and economic growth.
Experts say oil prices may remain unstable in the short term, depending on how the situation develops. If tensions continue to ease, prices could stay lower. However, any setback in negotiations may quickly push oil prices up again.
