Khaberni - Oil prices continued to decline on Wednesday, falling to a two-week low after a Pakistani source said the United States and Iran were approaching a preliminary peace agreement.
Brent crude futures fell $10.07, or 9.2%, to $99.80 a barrel by 10:42 GMT, dropping below the $100 mark for the first time since April 22.
West Texas Intermediate crude fell $10.79, or 10.6%, to $91.48 a barrel.
The two oils are headed for their largest daily declines in terms of percentage and absolute value since mid-April after losing nearly 4% in the previous session.
A source from Pakistan, which is playing a mediating role, said the United States and Iran are nearing an agreement on a one-page memorandum of understanding.
Axios reported from sources that the United States expects responses from Iran on several key points within the next forty-eight hours. The sources say that this development is the closest point the two parties have reached in making an agreement since the start of the war.
Iran has previously stated that it will only accept a fair and comprehensive deal.
On Monday, the U.S. military said it destroyed several small Iranian boats, as well as cruise missiles and drones, while managing two ships leaving the Gulf through the strait.
The disruption of maritime navigation through the strait since the outbreak of the war in February has led to a reduction in oil supplies and consequently higher crude prices, with Brent oil price last week reaching its highest level since March 2022.
The closure of the Strait of Hormuz has led to a decrease in global stocks, while refineries are trying to compensate for the shortage.
In the meantime, market sources on Tuesday citing figures from the American Petroleum Institute said that U.S. crude oil inventories fell for the third consecutive week, and gasoline and distillate stock levels also declined.
The sources said that crude oil inventories dropped by 8.1 million barrels in the week ending May 1. They added that gasoline stocks fell by 6.1 million barrels, and distillate stock levels decreased by 4.6 million barrels compared to the previous week.
