US crude falls below $100 per barrel after Trump comments on nearing Iran talks

US crude oil prices fell below $100 per barrel on Wednesday after President Donald Trump said negotiations with Iran had reached their final stages.

US West Texas Intermediate futures dropped more than 5% to settle at $98.26 per barrel, while global benchmark Brent crude futures also lost more than 5% to close at $105.02 per barrel.

Trump said earlier this week that he halted the resumption of military strikes against Iran to allow more time for diplomacy, following requests from Gulf Arab allies. He later told reporters on Wednesday, according to media reports, that the US administration was in the “final stages” of negotiations with Iran.

The US president has repeatedly expressed optimism about the possibility of reaching a deal with Iran and ending the war quickly, although tensions have repeatedly resurfaced between Washington and Tehran afterward.

Iran and the United States have remained locked in a standoff for weeks, with Tehran imposing restrictions on shipping through the Arabian Gulf’s Strait of Hormuz, while Washington has continued measures targeting Iranian ports. The Strait of Hormuz remains one of the world’s most important routes for global oil and gas trade.

Citibank warned on Tuesday that markets are underestimating the risk of prolonged disruptions to oil supplies through the Arabian Gulf’s Strait of Hormuz, forecasting that Brent crude could reach $120 per barrel in the near term.

Bank analysts said they increasingly believe that “the Iranian regime is likely to disrupt oil flows through the Arabian Gulf’s Strait of Hormuz for some time.”

Consultancy firm Wood Mackenzie also projected that oil prices could surge to $200 per barrel under an extreme scenario in which the strait remains largely closed through the end of the year.

However, the firm added that prices would fall sharply if a rapid peace agreement between the United States and Iran reopens the Arabian Gulf’s Strait of Hormuz by June, potentially pushing Brent crude down to around $80 per barrel by the end of 2026.