Oil falls 5%, Brent closes near $94 per barrel

Oil drilling rigs

Oil prices settled sharply lower on Wednesday as concerns over a potential collapse in the ceasefire between the US and Iran eased, despite continued uncertainty surrounding prospects for a broader agreement to end the conflict.

Iranian state television reported earlier in the day that it had reviewed a preliminary and unofficial framework draft for a possible agreement between Iran and the US aimed at ending the conflict and reopening the Strait of Hormuz. The report helped calm market fears sparked by Tehran’s accusations that Washington had violated the truce.

Meanwhile, US President Donald Trump said negotiations with Tehran have not yet resulted in a satisfactory agreement, while reiterating Washington’s position that the Strait of Hormuz must remain open and free from the control of any single country.