Khaberni - Oil prices fell more than 5% on Wednesday, amid expectations of a possible ceasefire that could alleviate supply disruptions from the main production region in the Middle East, following reports that the United States sent a 15-point plan to Iran to end the war between them.
Brent crude futures fell $6.21 or 5.9% to $98.28 a barrel by 00:58 GMT, while West Texas Intermediate American crude futures fell $4.67 or 5.1% to $87.68 a barrel.
Both crudes rose about 5% on Tuesday, before their gains receded in volatile trading after the close.
Hiroyuki Kikukawa, chief analyst at Nissin Securities Investment, said, "The expectations of a ceasefire increase slightly, and are driving profit-taking in the market."
He added, "But the expectations are still uncertain regarding the success of the negotiations, which limits the selling operations."
He mentioned that oil prices could rise again if fighting resumes and Iran's attacks extend to energy facilities in neighboring countries.
On Tuesday, US President Donald Trump said that the United States is making progress in its efforts to negotiate an end to the war with Iran, while a source confirmed that Washington sent a 15-point settlement proposal to Iran.
Channel 12 Israel reported that the United States is seeking a one-month ceasefire to discuss the plan, which includes dismantling Iran's nuclear program and stopping support for groups allied with Tehran, and reopening the Strait of Hormuz.
On Tuesday, Pakistani Prime Minister Shahbaz Sharif said he is ready to host talks between the United States and Iran to end the ongoing war between them.
However, Iran denied on Monday entering into negotiations with the United States.
A memo on Tuesday showed that Iran informed the International Security Council and the International Maritime Organization that "non-hostile ships" could pass through the Strait of Hormuz provided they coordinate with the Iranian authorities.
