Energy markets plunged on Wednesday due to hopes of de-escalation in the Middle East. Prices stabilized later, but volatility remains. The US presented a new proposal to Iran, aiming for a gradual resumption of flows through the Strait of Hormuz, while OPEC production declined significantly due to ongoing disruptions.
Oil prices stabilized temporarily as investors assessed the likelihood of a successful peace agreement between the US and Iran. Brent crude futures rose 88 cents, reaching $102.15 per barrel, while WTI crude advanced $1.12, reaching $96.20 a barrel. President Trump stated that direct talks were still too early, while Iranian officials described the US proposal as a ‘wish list’.